1. Which of the following are reported as assets on a bank's balance sheet? A) borrowings B) reserves C) savings deposits D) bank capital
Question
1. Which of the following are reported as assets on a bank's balance sheet?
A) borrowings
B) reserves
C) savings deposits
D) bank capital
Solution
B) Reserves C) Savings deposits D) Bank capital
These are considered assets on a bank's balance sheet.
A) Borrowings are not considered assets, but rather liabilities. This is because they represent money that the bank owes to others.
B) Reserves are considered assets because they represent cash or other liquid assets that the bank has on hand.
C) Savings deposits are also considered assets because they represent money that the bank has received from customers and can use to make loans or invest in other ways.
D) Bank capital is considered an asset because it represents the bank's own money, which it can use to cover losses or invest in its business.
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