The liabilities of a bank include all of the following except
A) borrowing from a Federal Reserve bank
B) savings deposits
C) vault cash
D) demand deposits

Question

Quizplus · Accepted Answer

Vault cash is considered an asset for a bank, not a liability. It represents the physical currency that the bank holds in its vault and ATMs, which is used to satisfy customer withdrawals and other cash needs. Liabilities, on the other hand, are what the bank owes to others, such as deposits from customers or money borrowed from other institutions.

The Liabilities of a Bank Include All of the Following