Question 4
Financial InstitutionsWhich of the following items is not an asset to commercial banks?
- A.Physical buildings and equipment
- B.Shareholders' funds
- C.Vehicle and office equipment
- D.Loans granted to customers
Show the answer and explanation
Answer: B (Shareholders' funds)
Explanation
Shareholders' funds are owed to the owners, so they are a liability; loans to customers are the bank's main assets.