Other

Question

What is the primary way in which

commercial banks acquire the

capital to loan out to the

community?

A. They borrow it from other commercial

lenders.

B. They use deposited cash from their regular

bank customers to issue loans.

C. They borrow from investment banks.

Answer

B. They use deposited cash from their regular bank customers to issue loans.

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Commercial banks acquire the capital to loan out to the community primarily by using deposited cash from their regular bank customers. This cash is used to issue loans...