Which of the Following Reasons Is the Primary Motivator for a Commercial

question 39

Multiple Choice

Which of the following reasons is the primary motivator for a commercial bank to acquire new depositors?

• A) A new deposit account will make more funds available to pay the interest on other deposit accounts.
• B) A new deposit account will make more funds available to pay the bank's employees.
• C) A new deposit account will make more funds available to give out in loans.
• D) A new deposit account will make more funds available to give out in dividends to its investors.
• E) A new deposit account will make more funds available to facilitate brokerage transactions.

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Definitions:

Exchange Rate

The worth of one currency when converted into another.

Gold

A precious metal used as an investment, a currency standard, and jewelry due to its perceived value and physical properties.

Currency

The system of money in general use in a particular country or economic system for buying and selling goods and services.

Current Account

A component of a country's balance of payments that measures the trade balance plus net income and direct payments between countries.