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Question
According to the textbook, business (commercial) transaction accounts are generally more profitable than personal checking accounts. Which of the following explains the reason(s) behind this statement?
A. The average size of a business transaction is smaller than a personal transaction.
B. Interest expenses associated with a commercial deposit transaction are higher.
C. The bank receives less investable funds in the commercial deposit transactions.
D. The average size of a business transaction is smaller than a personal transaction and interest expenses associated with commercial deposit transactions are higher.
E. Interest expenses associated with commercial deposit transactions are lower and a bank receives more investable funds in the commercial deposits transactions.
Answer
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Related questions
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