A bank's largest liability is its

Question

Quizplus · Accepted Answer

A bank's largest liability is its deposits of its customers, as these funds must be available for withdrawal by the customers at any time. Short-term borrowing and long-term debt are also liabilities, but these are typically smaller in scale than customer deposits. Shareholder equity represents the bank's net worth and is not a liability. Borrowing from the Bank of Canada may be a liability, but it is not typically as significant as customer deposits.

A Bank's Largest Liability Is Its