The Balance Sheet of a Depository Institution Lists

question 30

Multiple Choice

The balance sheet of a depository institution lists

• A) loans to the institution as assets.
• B) excess reserves as liabilities.
• C) checkable deposits as liabilities.
• D) required reserves as liabilities.
• E) loans from the institution as liabilities.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle.

Debt-to-equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, key in assessing financial leverage.

Assets

Resources owned by a business or individual that are expected to provide future economic benefits.

Equity

The value of an ownership interest in property or a business, after deducting liabilities from assets.