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JAMB Commerce 1995 Question 32

Question 32

Banking

A major liability of a commercial bank arises from

  1. A.customers' deposits
  2. B.loans and advances
  3. C.overdrafts
  4. D.staff allowances.
Show the answer and explanation

Answer: A (customers' deposits)

Explanation

Deposits are money the bank owes its customers, so they are its main liability; loans and overdrafts are assets.