Which of the following is a bank asset?
A) demand deposits
B) savings account deposits
C) certificates of deposit held by the public
D) loans made to customers

Question

Quizplus · Accepted Answer

Loans made to customers are a bank's assets as they represent the money loaned out by the bank to earn interest income. Demand deposits (A) and savings account deposits (B) are liabilities as they represent amounts owed by the bank to its customers. Certificates of deposit (C) are a liability when issued by the bank and an asset when held by the bank as they represent funds borrowed by the bank from the public.

Which of the Following Is a Bank Asset