Questions
ECON 206-PTS2-Online Final- Requires Respondus LockDown Browser
Single choice
Which of the following statements is false?
Options
A.Bank capital is recorded as an asset on the bank balance sheet.
B.A bank issues liabilities to acquire funds.
C.A bank's assets are its uses of funds.
D.The bank's assets provide the bank with income.
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Step-by-Step Analysis
Question restatement: The prompt asks to determine which statement is false among the given options about banking.
Option 1: 'Bank capital is recorded as an asset on the bank balance sheet.' This is incorrect because bank capital represents equity, i.e., the owners' claim on the bank after liabilities are accounted for. Equity is recorded sep......Login to view full explanationLog in for full answers
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