Loans and Deposits Within a Bank Are

question 106

Multiple Choice

Loans and deposits within a bank are:

• A) liabilities and assets, respectively, on a bank's balance sheet.
• B) assets and liabilities, respectively, on a bank's balance sheet.
• C) not found on a bank's balance sheet.
• D) both assets.
• E) both liabilities.

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Definitions:

Intragroup Transactions

Transactions that occur between entities within the same group of companies, often requiring elimination during the consolidation process.

NCI

NCI, or Non-controlling Interest, represents the portion of equity in a subsidiary not attributable directly or indirectly to the parent company.

Subsidiary Profits

Earnings generated by a subsidiary that contribute to the income and financial standing of its parent company.

Fair Value

Refers to the estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.