A bank displaying trading-account securities on its balance sheet is serving as a security dealer and plans to sell those securities before they reach maturity.

Question

Quizplus · Accepted Answer

If a bank displays trading-account securities on its balance sheet, it means that it is actively trading these securities and plans to sell them before they reach maturity. This is different from holding securities as investments, which would be displayed as available-for-sale or held-to-maturity securities on the balance sheet.

A Bank Displaying Trading-Account Securities on Its Balance Sheet Is