Which of the following is counted as a liability for a bank?

Question

Quizplus · Accepted Answer

Customer deposits are liabilities for a bank because the bank owes the deposited amount to its customers and is obligated to return it upon demand or as per the terms and conditions of the account agreement.

Answer: D 
 Bank loans are not liabilities for a bank, but rather assets because the bank lends money to borrowers and receives interest payments in return.

Choices B, C, and E are incorrect as bank reserves, securities, and customer loyalty are not liabilities, but rather assets or intangible assets for a bank.

Which of the Following Is Counted as a Liability for a Bank