Bank's Hold Marketable Securities as Part of Their Assets

question 116

Multiple Choice

Bank's hold marketable securities as part of their assets. For U.S. banks these marketable securities include:

• A) stocks and bonds.
• B) only the stocks of U.S. corporations.
• C) only the bonds of the U.S. treasury.
• D) only bonds.

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Definitions:

Balance Sheet

A financial statement that displays a company's assets, liabilities, and equity at a specific point in time.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, providing insight into its profitability or loss.

Managerial Accounting

The process of identifying, measuring, analyzing, and communicating financial information to managers for the pursuit of an organization's goals.

Service Firms

Companies that provide intangible products or services to consumers or other businesses, as opposed to selling physical goods.