Commercial banks differ from other businesses in that both their assets and their liabilities are mostly
A)illiquid.
B)financial.
C)real.
D)owned by the government.

Question

Quizplus · Accepted Answer

Commercial banks deal primarily in financial assets and liabilities, such as loans, securities, and deposits, which distinguishes them from other businesses that deal primarily in tangible, real assets. Additionally, because banks are subject to reserve requirements and deposit insurance, their liabilities are generally considered to be more secure and reliable than those of other businesses. While some banks may hold real assets as collateral or as part of their investment portfolios, these assets are typically not the primary focus of their operations.

Commercial Banks Differ from Other Businesses in That Both Their