Most of a bank's short-term liabilities are:
A)loans from the Federal Reserve.
B)loans from the U.S. Treasury.
C)loans to its customers.
D)customers' deposits.

Question

Quizplus · Accepted Answer

The majority of a bank's short-term liabilities are customers' deposits, such as savings and checking accounts. These funds can be withdrawn by customers at any time, making them a form of short-term financing for the bank's operations. Loans from the Federal Reserve and U.S. Treasury are less common sources of short-term financing for banks.

Most of a Bank's Short-Term Liabilities Are