Banking Awareness - Basics Of Banking & Banking Terminology
Which deposit contributes most to low-cost funds for banks?
Which deposit contributes most to low-cost funds for banks?
hard Q10 of 15
Step-by-Step Solution
Step 1: Identify cost aspect
Low-cost funds mean lower interest outflow for banks.Step 2: Match with deposit mix
CASA deposits (current + savings) are low-interest or no-interest.Final Answer:
CASA Deposits → Option BQuick Check:
CASA lowers bank funding cost ✅
Quick Trick: Low interest = CASA.
Common Mistakes:
- Assuming fixed deposits are low-cost.
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