Commercial Banks Primarily Serve Two Types of Customers-

question 262

Multiple Choice

Commercial banks primarily serve two types of customers-

• A) depositors and borrowers.
• B) commercial clients and residential clients.
• C) secured creditors and unsecured creditors.
• D) short-term borrowers and long-term borrowers.

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Definitions:

Deposit Maturity

The end of a deposit term at which point the deposited funds plus any accrued interest are available to the account holder.

Deposit Date

The specific day on which funds are placed into an account.

Maturity Value

The total amount payable to an investor at the end of a fixed term investment, including the principal and the interest.

Interest Amount

The sum of money paid or earned as interest, calculated by applying the interest rate to the principal.