Question 1 Which of the following best represents how does a bank operates: O a. The bank regulates the financing activities in the economy. O b. The bank collects donations and gambles with it. O c. The bank receives deposits and gives loans. d. The bank creates mega funds to finance the needs of the poor.

What are bank assets used for? Bank liabilities are the sources of bank ________? Bank capital is the contribution of the bank's owners; it acts as a cushion against what? Banks make a profit for their owners. Measures of a bank's profitability include what four things? Banks' off-balance-sheet activities have become increasingly important in recent years. What are these two things? Banks face several types of risk in day-to-day business. List them:

The level of activities in the financial system is a good measure of how the economy might be performing. *a. Trueb. FalseThe government is generally a demander of funds. *a. Trueb. FalseThe financial market is under the direct supervision of the Bangko Sentral ng Pilipinas (BSP). *a. Trueb. False

What are the sources of funding for commercial banks? Please also classify the sources of funding and briefly describe each category.