Nobria, Angelique Cres P.

Finance 9
Activity #3
1. Explain the ways in which a commercial bank can
accommodate withdrawal and loan demand.
Ans: The term commercial bank refers to a financial
institution that accepts deposits, offers checking account
services, makes various loans, and offers basic financial
products like certificates of deposit (CDs) and savings
accounts to individuals and small businesses. A
commercial bank is where most people do their banking.
Commercial banks make money by providing and earning
interest from loans such as mortgages, auto loans,
business loans, and personal loans. Customer deposits
provide banks with the capital to make these loans.
Commercial banks provide basic banking services to the
general public—to both individual consumers and small to
mid-sized businesses. As mentioned above, these services
include checking and savings accounts, loans and
mortgages, basic investment services such as CDs, as well
as other services such as safe deposit boxes.

2. What is meant by individual banking?

Ans: Retail banking, also known as consumer banking or
personal banking, is banking that provides financial
services to consumers as individuals not businesses. Retail
 banking is a way for individual consumers to manage their
money, have access to credit, and deposit their money in a
secure manner

3. What is institutional banking?

Ans: Institutional Banking is a specialized division within a
bank that offers a comprehensive suite of products and
services for large institutions both locally and abroad.In
particular they can provide complex financing and advisory
functions for corporate and government clients who may
require tailored capital products.

4. Explain global banking?

Ans: Global Banking & Markets provides financial services
and products to corporates, governments and institutions
worldwide. Global Banking & Markets focuses on building
partnerships with our corporate, government and
institutional clients to help them achieve consistent, long-
term performance.

5. What are the primary assets in which savings and loans

association invest?
Ans: Primary Assets- Business and consumer loans, mortgages, U.S.
government securities, and municipal bonds. Primary Asset- Municipal
Bonds, Corporate bonds and stocks, and U.S. Government Securities.
Finance Companies, Mutual Funds, Money Markets. Primary Liability-
Commercial paper, stocks, bonds.