Which of the following is a feature of commercial banks?
They rely mainly on checking and savings accounts as their major source of funds.
They use all their deposits to make loans to businesses and individuals.
There is a high risk for the bank to loan out a large percentage of their deposits, as all their depositors can withdraw at the same time.
They are managed investment pools set aside by individuals, corporations, unions, and some nonprofit organizations to provide retirement income for members.
They are businesses that protect their clients against financial losses from certain specified risks in exchange for a fee, called a premium.
Answer: They rely mainly on checking and savings accounts as their major source of funds.