Which of the following is a bank liability?
A) reserve deposits held at the Fed
B) loans made to customers
C) required reserves
D) demand deposit balances

Question

Quizplus · Accepted Answer

Demand deposit balances are the funds held in a bank account that are available on demand, such as checking accounts. They are a liability for the bank because they owe the funds to the account holder. Reserve deposits held at the Fed (A) and required reserves (C) are assets for the bank, as they are funds held by the bank either to meet regulatory requirements or to maintain a certain level of liquidity. Loans made to customers (B) are also assets for the bank, as they represent funds that are owed to the bank by the borrower.

Which of the Following Is a Bank Liability