Alexis Cucchi January 26, 2020 Assignment One Exercise 1: There are many different sources for raising funds in a commercial bank. The most common funds include loans from other banks, financial institutions, and mostly public deposits. These deposits could either be any sort of savings deposits or checking deposits as it is going inside the bank. These uses are then able to be borrowed by another person for example a loan. A loan is a borrowed amount of money from the bank that has to be paid off by the borrower by a certain amount of time. The bank collects funds with late fees and interest built up. Exercise Two: My course of action would be to make sure that a certain percent of cash would remain liquid and the rest of the percentage would be dispersed for certain accounts. For example, when certified deposits accounts become matured, and large denominations of money would have to be given out. Another percentage would be kept for government treasury
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