A checkable deposit at a commercial bank is a(n)
A) liability to the depositor and an asset to the bank.
B) liability to both the depositor and the bank.
C) asset to the depositor and a liability to the bank.
D) asset to both the depositor and the bank.

Question

Quizplus · Accepted Answer

Checkable deposits are considered an asset to the depositor because they represent money that the depositor can use. For the bank, these deposits are a liability because the bank owes this money to the depositor and must provide it upon request.

A Checkable Deposit at a Commercial Bank Is A(n)