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According to the Textbook,business (Commercial)transaction Accounts Are Generally More Profitable

Question 20

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According to the textbook,business (commercial) transaction accounts are generally more profitable than personal checking accounts.Which of the following explains the reason(s) behind this statement?


A) The average size of a business transaction is smaller than a personal transaction.
B) Interest expenses associated with a commercial deposit transaction are higher.
C) The bank receives less investable funds in the commercial deposit transactions.
D) The average size of a business transaction is smaller than a personal transaction and interest expenses associated with commercial deposit transactions are higher.
E) Interest expenses associated with commercial deposit transactions are lower and a bank receives more investable funds in the commercial deposits transactions.

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