How Do Deposits and Reserves Appear on a Bank's T-Account

question 21

Multiple Choice

How do deposits and reserves appear on a bank's T-account?

• A) Both deposits and reserves are assets.
• B) Both deposits and reserves are liabilities.
• C) Deposits are assets, and reserves are liabilities.
• D) Reserves are assets, and deposits are liabilities.

---

Definitions:

Sensitivity

The ability of a test to correctly identify those with the disease (true positive rate), indicating its reliability in detecting cases.

Infectious Disease

Diseases caused by pathogenic microorganisms, such as bacteria, viruses, parasites, or fungi; can be spread directly or indirectly from one person to another.

Sequential Tests

A statistical analysis method where data is evaluated in a sequence, allowing for earlier decision making without waiting for all data.

Net Sensitivity

A measure in screening and diagnostic tests that quantifies the ability of the test to correctly identify those with the condition.