A bank's largest liability is its
A) short-term borrowing.
B) long-term debt.
C) deposits.
D) securities.

Question

Quizplus · Accepted Answer

Deposits are the primary source of funds for banks and are considered the largest liability on their balance sheets. Short-term borrowing and long-term debt are also liabilities, but typically make up a smaller portion of a bank's funding. Securities, on the other hand, are assets held by the bank.

A Bank's Largest Liability Is Its