Which of the following are liabilities to a bank?
A) capital stock and reserves
B) property and capital stock
C) vault cash and demand deposits
D) demand and time deposits

Question

Quizplus · Accepted Answer

Demand and time deposits are liabilities to a bank because they represent funds that the bank owes to its depositors and must be available for withdrawal upon request. Choice A (capital stock and reserves) is a source of funds for the bank rather than a liability. Choice B (property and capital stock) is an asset/liability combination and not a liability on its own. Choice C (vault cash and demand deposits) includes an asset (vault cash) and a liability (demand deposits) combination, and not just liabilities.

Which of the Following Are Liabilities to a Bank