Question

what types of investments do banks use to make a profit? check all that apply.
□ opening checking accounts
□ starting new businesses
□ buying stocks and bonds
□ buying several properties
□ issuing loans to all customers
□ buying the rights to loans

Explanation:

• Opening checking accounts: This is a service for customers, not an investment for banks to make profit.
• Starting new businesses: Banks don't typically start new businesses as an investment method for profit; they finance businesses.
• Buying stocks and bonds: Banks invest in financial securities to earn returns.
• Buying several properties: Real - estate investments can generate income through rent or 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 in the same sense. Also, the "all customers" part is incorrect as banks screen borrowers.
• Buying the rights to loans: This is a form of investment where banks can earn from the cash flows of the loans.

Answer:

• buying stocks and bonds
• buying several properties
• buying the rights to loans