Which activity is normally included in a bank's asset side?
Correct answer: C. Loans granted to customers
- A. Customer deposits
- B. Bank borrowings
- C. Loans granted to customers
- D. Shareholders' paid-in capital
Explanation
Loans granted to customers are assets because they represent amounts receivable by the bank. Customer deposits, borrowings, and paid-in capital are generally recorded as liabilities or equity sources of funds.
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About Finance and Banking Basics
Business finance covers capital requirements, sources of funds, budgeting, cash flow, investment decisions and basic financial statements and ratios. Banking includes commercial bank functions, deposits, loans, credit creation, interest and the role of a central bank, including its monetary policy and regulatory functions.
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