A checking deposit in a bank in considered _________ of that bank?
Correct answer: D. a liability
- A. an asset
- B. capital
- C. net worth
- D. a liability
Explanation
A customer’s checking deposit is a claim against the bank, while the bank must repay or transfer it on demand, so it appears as a liability on the bank’s balance sheet. The corresponding funds or loans held by the bank are its assets.
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