IvanRivera6-Unit.8-FinancialMrk.MT481 - MT481 Financial...

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MT481: Financial Markets Banks and Mutual Funds Unit 8, Prof. Weaver Ivan Rivera Chapter 17: Questions and Applications: q. 2, 3, 4, and 11, page 479. 2. Bank Sources of Funds What are four major sources of funds for banks? What alternatives does a bank have if it needs temporary funds? What is the most common reason that banks issue bonds? Four major sources of funds for banks are Money Market Deposit accounts which could be pretty big from savings and small investors, then the regular savings, transaction/checking deposits and time deposits. The Alternative options for bank is obviously the Federal Government, Euro Borrowing, Discount window and callable bonds as well as repos. With this comes in the reason why banks issue bonds and get fast cash to acquire other assets and/or expand. 3. CDs Compare and contrast a retail CD and a negotiable CD. The regular or retail CDs and negotiable CDs (NCDs) both specify a minimum deposit, a date of maturity, and a stated interest rate. But NCDs differ from retail CDs because
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This note was uploaded on 09/22/2011 for the course BUS MT400 taught by Professor Weaver during the Spring '11 term at Kaplan University.

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IvanRivera6-Unit.8-FinancialMrk.MT481 - MT481 Financial...

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