Which of the following is counted as a liability for a bank?
A)customer deposits
B)bank reserves
C)securities
D)bank loans

Question

Quizplus · Accepted Answer

Customer deposits are considered a liability for a bank because the bank owes those funds to its customers and must be available to be withdrawn or transferred by the customer. Bank reserves are the funds that a bank keeps on hand to meet its obligations, therefore they are not considered a liability. Securities can be either assets or liabilities depending on their classification on the balance sheet. Bank loans are assets for a bank as they represent funds lent out by the bank.

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