Which of the following are ways that commercial banks use the funds they receive? Check all that apply. O Provide working capital loans to support business that don't want to add debt to their balance sheet but still need large amounts of capital for major purchases. O Provide term loans to support business that don't want to add debt to their balance sheet but still need large amounts of capital for major purchases. O Provide working capital loans to support business' ongoing operations. O Engage in repurchase agreements. True or False: The major use for bank funds is real estate loans. O True O False

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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3. Uses of commercial bank funds
Which of the following are ways that commercial banks use the funds they receive? Check all that apply.
Provide working capital loans to support business that don't want to add debt to their balance sheet but still need large amounts of capital
for major purchases.
Provide term loans to support business that don't want to add debt to their balance sheet but still need large amounts of capital for major
purchases.
Provide working capital loans to support business' ongoing operations.
Engage in repurchase agreements.
True or False: The major use for bank funds is real estate loans.
True
False
Transcribed Image Text:3. Uses of commercial bank funds Which of the following are ways that commercial banks use the funds they receive? Check all that apply. Provide working capital loans to support business that don't want to add debt to their balance sheet but still need large amounts of capital for major purchases. Provide term loans to support business that don't want to add debt to their balance sheet but still need large amounts of capital for major purchases. Provide working capital loans to support business' ongoing operations. Engage in repurchase agreements. True or False: The major use for bank funds is real estate loans. True False
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