Which of the following lists includes only banks' assets?
A)liquid assets,loans,securities,and reserves
B)reserves,savings deposits,securities,and loans
C)reserves,securities,liquid assets,and savings deposits
D)securities,reserves,checkable deposits,and liquid assets
E)reserves,checkable deposits,securities,and loans

Question

Quizplus · Accepted Answer

Liquid assets, loans, securities, and reserves are all assets that banks hold. Reserves are held with the Federal Reserve, and liquid assets include cash and short-term investments. Loans and securities are both types of financial assets that generate income for the bank. Options B, C, D, and E all include liabilities such as savings deposits or checkable deposits, which are not assets for the bank.

Which of the Following Lists Includes Only Banks' Assets