Which of the following are the three basic ways of lending unsecured, short-term funds by commercial banks?
A) mortgage-backed securities, T-bonds, and commercial paper
B) single-payment note, lines of credit, and revolving credit agreements
C) T-bills, municipal bonds, and commercial paper
D) commercial paper, real estate bonds, and corporate bonds

Question

Quizplus · Accepted Answer

The three basic ways of lending unsecured, short-term funds by commercial banks are: 
1) Single-payment note 
2) Lines of credit 
3) Revolving credit agreements. 
Option A is incorrect as it mentions mortgage-backed securities and T-bonds which are long-term investments. Option C is incorrect as it mentions T-bills and municipal bonds which are not unsecured. Option D is incorrect as it mentions real estate bonds and corporate bonds which are not unsecured short-term lending options.

Which of the Following Are the Three Basic Ways of Lending