The interbank loans that appear on banks' balance sheets represent what proportion of bank capital?
A) Less than 4 percent
B) Almost three-fourths
C) About one-third
D) Less than one percent

Question

Quizplus · Accepted Answer

Interbank loans typically represent less than 4% of a bank's capital. This is because banks typically have a diverse range of assets and sources of funding, including customer deposits, equity, and other forms of debt. Interbank loans are one way that banks can access short-term funding, but they are usually a relatively small part of a bank's overall capital structure.

The Interbank Loans That Appear on Banks' Balance Sheets Represent