Loans made between borrowers and lenders are:

A. not part of either parties' assets or liabilities until the loans are repaid.
B. assets to the lenders and liabilities of the borrowers since the promises are made to the lenders.
C. liabilities to the lenders and assets to the borrowers since the borrower obtains the funds.
D. liabilities to both the lenders and the borrowers.


Answer: B

Economics

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