A bank will consider a car loan to a customer to be ________ and a customer's chequing account to be ________.

Question

Quizplus · Accepted Answer

A car loan is considered an asset to the bank because it represents money that will be paid back to them with interest. A customer's chequing account is considered a liability to the bank because they owe the customer the money that is deposited in that account and can be withdrawn at any time. Therefore, option B, an asset loan and a liability account, is the most appropriate answer.

A Bank Will Consider a Car Loan to a Customer