The Main Source of Profit for Financial Institutions Is

question 39

Multiple Choice

The main source of profit for financial institutions is

• A) their ownership of stocks in commercial corporations.
• B) their ownership of real assets received in foreclosures on loans to households.
• C) the fees charged for holding and servicing checking accounts.
• D) the difference between interest paid on deposits and interest received on loans.
• E) the difference between the cost of creating new money and the interest paid on loans.

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Definitions:

Risk Management

The identification, assessment, and prioritization of risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unforeseen events.

Interactive Nurturing

A process of fostering growth or development in someone through engaging, supportive, and reciprocal interactions.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification and diagnostic tool for mental disorders used by healthcare professionals.

Substance Disorders

Refer to medical conditions characterized by the addictive use of substances such as drugs or alcohol, leading to significant impairment or distress.