5 - Banking Homework: Unit 5 :Conceptual Problems Why are...

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Banking Homework: Unit 5 Conceptual Problems : Why are checking accounts not an important source of funds for commercial banks in the United States ? They are still very important, however, over the last 10-20 years or so funds have been leaving traditional bank checking accounts and going into money market fund accounts that provide better returns, are very liquid and typically allow similar check writing features. Most large banks responded to this trend by organically developing their own brokerage houses or purchased one. Also, bank customers are being more efficient with their cash. The ability to conveniently transfer funds online/ATM/phone, the increase use of credit cards as a payment method, the increase in the popularity of electronic automatic payments, and the availability of overdraft protection products have all lead to customers being more efficient by maintaining smaller relative balances in low or zero interest checking accounts. Checking accounts for banks however are still extremely important as a lead
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5 - Banking Homework: Unit 5 :Conceptual Problems Why are...

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