Question 17
Financial InstitutionsWhich of the following can be regarded as a liability of a commercial bank?
- A.Advances
- B.Deposits
- C.Treasury bills
- D.Overdrafts
- E.Cash.
Show the answer and explanation
Answer: B (Deposits)
Explanation
Customers' deposits are money the bank owes to depositors, so they are liabilities; advances, overdrafts, bills and cash are assets.