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Which of the following is an example of a use of funds for the bank? A borrower

ID: 2780687 • Letter: W

Question

Which of the following is an example of a use of funds for the bank?

A borrower repays $1500 of a loan they have received

The bank sells $5,000,000 of T-Bills

None of the responses are uses of funds

A customer withdraws $1000 from their account  

The bank issues a $1,000,000 CD

A.

A borrower repays $1500 of a loan they have received

B.

The bank sells $5,000,000 of T-Bills

C.

None of the responses are uses of funds

D.

A customer withdraws $1000 from their account  

E.

The bank issues a $1,000,000 CD

Explanation / Answer

Use of fund in bank means use of fund in making investment to earn return in future. the use of fund includes, Making loan to borrower, making long term and short term investment, withdrawal of deposit by depositor.

A customer withdraws $1000 from their account  is an example of a use of funds for the bank.

Option (D) is correct answer.

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