The main assets held by banks are:
A) deposits.
B) bond holdings.
C) loans.
D) reserves.

Question

Quizplus · Accepted Answer

Banks primarily generate profits through lending activities, hence loans are the main assets held by banks.

Answer: A 
 Deposits are also significant assets held by banks, as they provide funding for the bank's lending activities.

Answer: D 
 Reserves (such as required reserves held with central banks) are also assets held by banks, although they are not typically as significant as loans and deposits.

Therefore, the best choices are A, C, and D.

The Main Assets Held by Banks Are