In a bank's balance sheet, the main item on the liabilities side is:

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BlackTom AI · Accepted Answer

Question restatement: In a bank's balance sheet, the main item on the liabilities side is: options are a. government securities, b. deposits, c. home mortgages, d. term loans.

Option a: Government securities. These are typically assets on a bank's balance sheet, representing holdings of government bonds or similar securities. They are not liabilities because they are resources the bank owns, not obligations owed to others. Therefore, this choice is incorrect for the liabilities side.

Option b: Deposits. Customer deposits are a fundamental liability for banks because they are funds the bank owes to customers and can be withdrawn or used by the bank for lending and other activities. In most banks, deposits constitute the largest portion of liabilities, making this option a strong candidate for the main liability.

Option c: Home mortgages. A bank’s home mortgages are loans the bank has issued to borrowers, which appear as assets on the balance sheet. They are not liabilities; thus this option is incorrect.

Option d: Term loans. Similar to mortgages, term loans are typically assets for the bank (amounts lent to borrowers) rather than liabilities. While banks may have liabilities from borrowings or debt, term loans issued to customers are assets, so this option is incorrect here.

In summary, the liabilities side of a bank's balance sheet is dominated by customer deposits, not by securities or loans the bank has issued. Deposits represent the funds that the bank must repay to depositors, aligning with the typical structure where deposits are the main liability.

MCD2170 - T1 - 2025 Pre-class Quiz Week 10

In a bank's balance sheet, the main item on the liabilities side is:

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类似问题

Part 1Which of the following is not an asset LOADING... on a bank's balance sheet? Part 2 A. Loans. B. Reserves. C. Government securities. D. Checkable deposits.

Which of the following statements is false?

A bank holds $1100 in reserves, has $1800 worth of deposits, and has loaned out $800. Apart from these, the bank does not hold any other assets or liabilities. The required reserve ratio is 20%. What is the bank's net worth (in $)?

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MCD2170 - T1 - 2025 Pre-class Quiz Week 10

In a bank's balance sheet, the main item on the liabilities side is:

查看解析

登录即可查看完整答案

类似问题

Part 1Which of the following is not an asset LOADING... on a​ bank's balance​ sheet? Part 2 A. Loans. B. Reserves. C. Government securities. D. Checkable deposits.

Which of the following statements is false?

A bank holds $1100 in reserves, has $1800 worth of deposits, and has loaned out $800. Apart from these, the bank does not hold any other assets or liabilities. The required reserve ratio is 20%. What is the bank's net worth (in $)?

更多留学生实用工具

希望你的学习变得更简单

Part 1Which of the following is not an asset LOADING... on a bank's balance sheet? Part 2 A. Loans. B. Reserves. C. Government securities. D. Checkable deposits.