Suppose Bank A holds $50,000 in deposits with other banks.On its balance sheet,this amount will be accounted as Bank A's ________.

Question

Quizplus · Accepted Answer

The $50,000 held in deposits with other banks will be accounted for as cash equivalents on Bank A's balance sheet, as they are short-term, highly liquid investments that can be easily converted to cash. Reserves refer to funds that a bank must hold in reserve against deposits and are typically held in the form of cash or deposits with the central bank. Long-term investments are investments with maturities beyond one year, and short-term borrowing refers to funds borrowed by a bank for a short period of time to meet its liquidity needs.

Suppose Bank a Holds $50,000 in Deposits with Other Banks