Which of the items below are typically LIABILITIES for a commercial bank?
(Select all that apply; two of the answers below are correct.)
Reference: Chapters 11 & 12
Investment Securities (such as treasury bonds &
Vault Cash & Deposits at the Federal Reserve
Customer Deposits (such as checking or savings accounts)
Borrowed Funds (such as short-term borrowing from other banks, or from the Federal Reserve)
Customer Loans (such as mortgages or small business loans)
Customer Deposits (such as checking or savings accounts)
Borrowed Funds (such as short-term borrowing from other banks, or from the Federal Reserve)
This two items are liabilities of commercial banks. Bank liabilities are consider as source of funds and assets are consider uses of funds. Bank liabilities mainly include deposits, borrowings and other liabilities.
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