Which of the following is a bank liability A Reserve deposit
Which of the following is a bank liability?
A. Reserve deposits at the Fed.
B. Securities the bank has purchased.
C. Transactions account balances.
D. Loans made to customers.
Solution
Option C. Transactions account balances.
Explanation: Bank Liabilities are the obligations of the banks which must be paid. Transactions account balances are liabilities of a bank. The remaining options are assets of a bank.
