Which of the following can serve as either an asset or a liability for a depository institution?
A)customer time and saving deposits
B)the funds customers borrow
C)repurchase agreements
D)reserves

Question

Quizplus · Accepted Answer

Repurchase agreements can serve as either an asset or a liability for a depository institution depending on whether the institution is the seller or the buyer in the repurchase agreement. If the institution sells securities with an agreement to repurchase them later, the repurchase agreement is a liability. If the institution buys securities with an agreement to sell them back later, it is an asset.

Which of the Following Can Serve as Either an Asset