If a Bank Desires to Maximize Its Net Interest Margin

If a bank desires to maximize its net interest margin, it would best achieve its goal by attempting to obtain most of its funds through ____ and use most of its funds for ____ (assuming that all loans will be repaid) .

A) traditional demand deposits; commercial loans
B) traditional demand deposits; consumer loans
C) NOW accounts; consumer loans
D) NOW accounts; commercial loans

Correct Answer:

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