Demand Deposits Are Liabilities to a Bank Because

question 15

Multiple Choice

Demand deposits are liabilities to a bank because

• A) the bank must pay interest on these accounts
• B) we need some method of creating a balance
• C) the bank must be willing to account for loans and bonds
• D) the bank could potentially lose this money if loans are not repaid
• E) the customers have the right to withdraw the funds from their checking accounts

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