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JAMB Economics 1978 Question 20

Question 20

Financial Institutions

The largest liability appearing on the books of a commercial bank is

  1. A.cash
  2. B.deposits
  3. C.loans and advances
  4. D.capital and reserves
  5. E.Treasury bills.
Show the answer and explanation

Answer: B (deposits)

Explanation

Customers' deposits are by far the biggest item a bank owes, so they are its largest liability.