When a bank makes a loan to one of its customers, to the bank the loan is classified as

A) an asset.
B) a liability.
C) neither an asset nor a liability.
D) an asset in some cases and a liability in other cases, depending on the type of loan.


A

Economics

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Indicate whether the statement is true or false

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Which of the following is not primarily a function of the federal government

a. national security b. higher education c. economic stability d. market competition e. all of the above are functions of the federal government

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Assume the short-run average total cost for a perfectly competitive industry increases as the output of the industry expands. In the long run, the industry supply curve will:

a. have a positive slope. b. have a negative slope. c. be perfectly horizontal. d. be perfectly vertical.

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The theory of comparative advantage suggests that a(n):

a. industrialized country should not import. b. country that is not competitive should import everything. c. country specialize in producing goods or services for which it has a lower opportunity cost. d. none of these.

Economics