Which of the following is considered a liability for a bank?
A)loans
B)investments
C) deposits
D) none of the above; banks are prohibited by law from carrying liabilities

Question

Quizplus · Accepted Answer

Deposits are considered a liability for a bank because the bank has an obligation to repay the depositor when they request their funds. Loans and investments are assets for a bank, meaning they generate revenue and are expected to provide a return on investment.

Which of the Following Is Considered a Liability for a Bank