The Primary Types of Assets on a Bank's Balance Sheet

question 71

True/False

The primary types of assets on a bank's balance sheet include cash, securities, and loans.

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Definitions:

Regulation

Rules or directives made and maintained by an authority to manage or govern behavior within its jurisdiction, typically aiming at ensuring fairness, safety, or standards.

Subrogation

The substitution of parties whereby the party substituted acquires the rights at law of the other party, usually by way of contractual arrangement.

Negligence

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, resulting in harm or damage.

Salvage

The right of the insurer to the property where the insured is compensated for the loss.