Mark opens a bank where he offers a high interest rate on his customers' savings. Then he invests their deposits in stocks in order to get a high rate of return. The customers get deposits guaranteed by the FDIC and a good return. Why do many banks not offer the same plan as Mark's
bank?
Select the best answer from the choices provided.
ОА.
Some stock investments will lose money, cutting into a bank's profits.
Banks cannot invest deposits and rely on the returns for their profits.
OB.
Ос.
If not enough money is invested, banks cannot return customer's money when needed.
OD
All answers are correct.