BEO2000 Lecture Notes - Lecture 7: Transaction Account, Commercial Paper, Deposit Account

• School: Victoria University
• Department: BEO
• Course: BEO2000
• Professor: Dennis Allen

Document Summary

Lecture 7: commercial banks: balance sheet activities: beo2000 financial institutions & monetary theory, primary source, kidwell et al. 533-562: with respect to learning outcomes, you should be able to, b. Discuss commercial banks" main sources of balance sheet funds: main activities of commercial banking, discuss commercial banks" main uses of balance sheet funds, evaluate the functions and activities of commercial banks; Taking deposits from customers: making loans to their customers, commercial bank activities are broadly divided into, balance sheet activities (assets, liabilities and equity), obs activities (contingent assets and liabilities) Obs activities are discussed in lecture 8: banks and asset transformation, commercial bank balance sheet, main bank sources of funds. Equity (e. g. share capital; retained profits: main bank source of funds: deposit accounts. Funds held in accounts that can be withdrawn on demand: deposit account used directly for payments. Interest bearing accounts: main bank source of funds: deposit accounts. Limits on transactions and some have regular fees.