Which One of the Following Statements Is TRUE

question 116

Multiple Choice

Which one of the following statements is TRUE?

• A) Demand deposits are assets of a bank.
• B) A bank's assets plus its liabilities equals must equal zero.
• C) A bank's reserves can only be kept as cash in its vault.
• D) Assets generate income for a bank.

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Definitions:

Asset Management

The practice of managing a company's assets to maximize their efficiency and value, including investments, real estate, and other physical assets.

Profitability

A measure of how effectively a company uses its resources to generate profit, typically expressed as a percentage or ratio.

Current Ratio

A liquidity ratio measuring a company's ability to pay short-term obligations with its current assets.

Business Assets

Resources owned by a business that have economic value and can be used to generate income or provide future benefits.