what types of investments do banks use to make a profit? check all that apply.\nopening checking…

what types of investments do banks use to make a profit? check all that apply.\nopening checking accounts\nstarting new businesses\nbuying stocks and bonds\nbuying several properties\nissuing loans to all customers\nbuying the rights to loans

what types of investments do banks use to make a profit? check all that apply.\nopening checking accounts\nstarting new businesses\nbuying stocks and bonds\nbuying several properties\nissuing loans to all customers\nbuying the rights to loans

Answer

Answer:

C. buying stocks and bonds, D. buying several properties, F. buying the rights to loans

Brief Explanations:

  • Opening checking accounts: This is a service for customers, not an investment for profit. Banks may charge fees, but it's not an investment.
  • Starting new businesses: Banks don't typically start new businesses as an investment method; they lend to businesses.
  • Buying stocks and bonds: Banks invest in financial instruments like stocks and bonds to earn returns.
  • Buying several properties: Real estate investments can generate income (rental, appreciation) for banks.
  • Issuing loans to all customers: Banks don't issue loans to all customers (they assess creditworthiness), and issuing loans is a lending activity, not an investment (though interest from loans is revenue, the question is about investments banks make, not lending operations).
  • Buying the rights to loans: Banks can buy loan portfolios (rights to loans) to earn interest from those loans, which is an investment.