Which of the following is an example of a bank's liabilities?
A) its reserves
B) its loans
C) checkable deposits
D) its holdings of U.S. government bonds

Question

Quizplus · Accepted Answer

Checkable deposits are funds that customers have deposited in the bank and can withdraw on demand. They are considered a liability for the bank because the bank has an obligation to return the deposited funds when the customer requests it. Reserves, loans, and holdings of U.S. government bonds are all assets for the bank, not liabilities.

Which of the Following Is an Example of a Bank's