Which of the Following Is NOT Held as an Asset

question 35

Multiple Choice

Which of the following is NOT held as an asset by banks?

• A) Reserves
• B) Loans
• C) Currency in the banks' vaults
• D) Investment securities
• E) Deposits

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Definitions:

Perfection

In legal and financial contexts, the process of securing an interest in property to achieve priority over third parties in relation to the property.

Secured Interest

A property interest created by agreement or by law over assets to secure the performance of an obligation, usually the payment of a debt.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to repay according to the agreed terms.

Repossessing

Repossessing refers to the process of a lender taking back possession of property (typically collateral) when the borrower fails to make required payments.