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Music hello John I hope you are ready because we are going to start another session of discussion about banks off course Uncle Sam I am always ready to learn about financial systems so what are you going to teach me today Uncle Sam today I am going to tell you about banks sources and uses of funds so let's start with sources of funds banks manage their source of funds through active liability management that is banks offer a range of deposit and investment products that vary by risk-return liquidity and maturity banks liabilities are sources of funds is categorized let's deposit and non deposit the four common deposits are demand deposit fixed term deposit certificates of deposit and other deposits demand deposits are funds deposited in check accounts to facilitate payment transaction and sometimes are called transaction accounts secondly fixed term deposit offers a choice of terms of investment and investors get higher interest rate as term increases however the disadvantages loss of

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