Of the following, the riskiest assets held by commercial banks are

Question

Quizplus · Accepted Answer

Commercial loans are considered the riskiest assets held by commercial banks because there is always a chance that the borrower may default on their payment, leading to a loss for the bank. Although U.S. government bonds, reserves, and Treasury bills are generally considered safe assets, there is still some risk involved with them, such as fluctuations in interest rates or inflation.

Of the Following, the Riskiest Assets Held by Commercial Banks