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The primary source of funds for a commercial bank is: a. loans from other banks b....

The primary source of funds for a commercial bank is:

a. loans from other banks

b. sale of common stock

c. deposits from customers

d. none of the above

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Answer #1

Commercial banks major source of income is interest income by lending loans to borrowers. It acquires the loanable funds by way of deposits from customers at lower interest rates.

Hence, correct option is C

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