Commercial and Investment Banks

Question 1

commercial banks

Answer 1

accepts deposits from the general public and lends money to those who wish to borrow money

Question 2

investment banks

Answer 2

provides financial services to other businesses

Question 3

most to least liquid assets of commercial banks

Answer 3

• notes and coins
• bills
• bonds or shares
• advances

Question 4

objectives of a commercial bank

Answer 4

liquidity- make sure have sufficient notes and coins
profitability- make profit by lending out money to borrowers and charging interest
security- interest on riskier loans is higher