Question 27
Financial InstitutionsWhich of the following is not an asset of a commercial bank?
- A.Cash
- B.Money at call
- C.Treasury bills
- D.Reserve funds
- E.Loans and overdrafts.
Show the answer and explanation
Answer: D (Reserve funds)
Explanation
Cash, money at call, Treasury bills and loans are things a bank owns. Reserve funds are profits kept back that belong to shareholders, so they are shown as liabilities.