When a customer deposits money in a bank account, this deposit represents:
a) a liability for the customer and an asset for the bank.
b) an asset for both the bank and the customer.
c) a liability for the customer and the bank.
d) a liability for the bank and an asset for the customer.
Ans: d) a liability for the bank and an asset for the customer.
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The existence of a "bought deal" in public offerings of bonds came about as a result of
A) shelf registration. B) a narrow underwriting spread. C) the need of investment banks to form syndicates before underwriting an issue. D) the need by underwriters to avoid as much risk as possible.
A bank can only fail if it is not in good financial health
a. True b. False
The sum of all income earned by resource suppliers in an economy is smaller than aggregate expenditure because some income is saved
Indicate whether the statement is true or false
The long-run aggregate supply curve will shift outward to the right when
A. government spending increases. B. there is economic growth. C. the amount of labor decreases. D. the price level decreases.