What Is the Main Source of Profit for Financial Institutions

question 49

Multiple Choice

What is the main source of profit for financial institutions?  

• 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 chequing accounts 
• D) the difference between interest paid on deposits and interest received on loans

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Definitions:

Royalty

A payment made to the owner of a certain property, right, or patent for the use of that property by others.

Textbook Sales

The activity of selling educational books typically used in schools, colleges, and universities.

Value

An expression of the worth of something, typically in monetary terms but can also encompass subjective aspects like sentimental value.

Percentage Form

A way of expressing numbers as a fraction of 100.