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

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Loans are the riskiest assets held by commercial banks as there is always a chance of default by borrowers. This risk is mitigated by proper credit assessment and underwriting practices. Reserves and U.S. government Treasury bills are considered safe assets, while U.S. government bonds are relatively safe but can still carry some risk in certain economic conditions.

Of the Following, the Riskiest Assets Held by Commercial Banks