The major liabilities of the commercial banks are ___________?
Correct answer: B. deposits
- A. junk bonds
- B. deposits
- C. loans
- D. swap bonds
Explanation
Deposits are the principal liabilities of commercial banks because the bank owes these funds to depositors and must repay them on demand or at maturity. Loans are major bank assets, not liabilities.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The federal funds, bankers acceptance, commercial paper and repurchase agreements are classified as ____________?
In financial transactions, the risk that there will be no profit in selling of this asset is classified as _____________?
The transaction cost of trading of financial instruments in centralized market is classified as ____________?
When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as _____________?
The risk which arises all the activities from contingent liabilities and assets is considered as ____________?
The technique by which companies reduce cost of transaction services and results in increased efficiency is classified as ____________?