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2. Sources of commercial bank funds Banks are an integral financial institution because they act as financial intermediaries who lend and borrow money for financial market participants who could not otherwise gain access to or save a substantial amount of funds. A bank's liabilities and equity are the sources of funds they bring in, while their assets are their uses of the funds. Using the following table, select which type of deposit account would be best suited for the financial market participant in each scenario. Scenario Deposit Account Kevin is an 18-year-old high school student who wants to put $700 in an account that allows him to write checks and make payments using a debit card. He is not interested in collecting interest on funds in the account. Maria is a 21-year-old college student who wants to put $1,000 in an account that allows him to write checks and make payments using a debit card. He is interested in collecting interest on funds in the account. Yakov wants to put a small amount of money in an interest-earning account for five years and doesn't plan on withdrawing the funds until the end of the fifth year, but doesn't mind withdrawing them if the financial institution no longer wants them midway through the five-year period. Simone wants to put a small amount of money in an interest-earning account for three years, doesn't plan on withdrawing the funds, and wants them to stay in the account until the end of the third year. a If banks are ever running short on funds because they either don't have a lot of savers depositing money in deposit accounts or get unexpected funding requests, they have a variety of sources they could borrow money from. 2. Sources of commercial bank funds Banks are an integral financial institution because they act as financial intermediaries who lend and borrow money for financial market participants who could not otherwise gain access to or save a substantial amount of funds. A bank's liabilities and equity are the sources of funds they bring in, while their assets are their uses of the funds. Using the following table, select which type of deposit account would be best suited for the financial market participant in each scenario. Scenario Deposit Account Kevin is an 18-year-old high school student who wants to put $700 in an account that allows him to write checks and make payments using a debit card. He is not interested in collecting interest on funds in the account. Callable CD Demand Deposit Money Market Deposit Maria is a 21-year-old college student who wants to put $1,000 in an account that allows him to write checks and make payments using a debit card. He is interested in collecting interest on funds in the account. Negotiable CD Negotiable Order of Withdrawal Passbook Savings Yakov wants to put a small amount of money in an interest-earning account for five years and doesn't plan on withdrawing the funds until the end of the fifth year, but doesn't mind withdrawing them if the financial institution no longer wants them midway through the five-year period. Retail CD Simone wants to put a small amount of money in an interest-earning account for three years, doesn't plan on withdrawing the funds, and wants them to stay in the account until the end of the third year

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