When You Have $1,000 in a Savings Account at a Bank

question 61

Multiple Choice

When you have $1,000 in a savings account at a bank:

• A)the bank holds a financial asset of $1,000 and you hold a financial liability of $1,000.
• B)the bank holds a financial liability of $1,000 and you hold a financial asset of $1,000.
• C)both you and the bank now have a financial asset of $1,000.
• D)both you and the bank now have a financial liability of $1,000.

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Definitions:

Other Goods

Refers to products or commodities that are considered as alternatives or options aside from the primary goods under consideration.

Competitive Rate

A pricing strategy often used by businesses to match or beat the prices offered by competitors in the market.