Which of the Following Is the "Cheapest" Source of Funds

question 69

Multiple Choice

Which of the following is the "cheapest" source of funds for a commercial bank?

• A)federal fund borrowing
• B)checking deposits
• C)issuing bonds
• D)reserves

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Definitions:

Investing Activities

Transactions involving the purchase or sale of long-term assets and other investments not considered cash equivalents, usually reflected in the cash flow statement of a company.

Cash Dividends

Payments made by a corporation to its shareholders, usually in the form of cash, out of its profits or reserves.

Payable

Refers to an amount of money that a company owes to its creditors or suppliers, to be paid at a later date.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.