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:

Unconscious

The part of the mind that is inaccessible to conscious thought but that affects behavior and emotions, according to psychoanalytic theory.

Id

In psychoanalysis, a part of the mind in which innate instinctive impulses and primary processes are manifest.

Ego

Part of the psyche that mediates between the conscious, the unconscious, and reality, operating based on the reality principle, according to Freudian theory.

Basic Traits

Fundamental personality characteristics that are relatively stable over time and across situations.