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Q: Where do banks get the funds to make loans?
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Sources of fund?

There are many sources of funds that people can get. Banks offer loans and mutual funds, and people get paid from working.


What are the Sources and uses of funds in banks?

Deposits as main source of Funds and Loans as main uses of funds in Bank.


When people invest in mutual funds they are making loans to banks and their investments are insured by the FDIC True or False?

True. When people invest in mutual funds they are making loans to banks and their investments are insured by the FDIC.


What are the interest rates that the federal reserve bank charge on loans they make to commercial banks and thrifts are called what?

Federal Funds Rate


What is The market for overnight loans between commercial banks known as?

The federal funds market


The interest rate banks charge each other on overnight loans?

Federal Funds Rate


When banks make loans the money supply increases or decreases?

When banks make loans, the money supply increases, since the people who receive these loans will have more money.


What are the functions of Co operative Banks?

1. mobilization of funds from their members. 2. advance loans to the members


Do commercial banks make loans?

Yes, it is a major source of a banks income.


What is the name of interest rate that banks charge one another for very short term loans?

Federal funds rate.


What is deposit mobilisation in banking?

As you might already know, the main business for banks is accepting deposits and granting loans. The more the loans the banks disburse the more profit they make. Also, banks do not have a lot of their own money to give as loans. They depend on customer deposits to generate funds for granting loans to other customers. So a deposit mobilization scheme would encourage customers to deposit more cash with the bank and this money in turn will be used by the bank to disburse more loans and generate additional revenue for themselves.


What is the meaning of Mobilization of credit in banking?

As you might already know, the main business for banks is accepting deposits and granting loans. The more the loans the banks disburse the more profit they make. Also, banks do not have a lot of their own money to give as loans. They depend on customer deposits to generate funds for granting loans to other customers. So a deposit mobilization scheme would encourage customers to deposit more cash with the bank and this money in turn will be used by the bank to disburse more loans and generate additional revenue for themselves.