Which of the Following Is Not an Asset of a Bank

question 18

Multiple Choice

Which of the following is not an asset of a bank?

• A) business deposits
• B) consumer loans
• C) deposits in other banks
• D) government securities
• E) All of the above are bank assets.

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Definitions:

Debt

Borrowed money that is expected to be repaid in the future, typically with interest.

Cash Flow to Creditors

The sum of interest payments and net new borrowings, representing the cash flow from a company to its creditors during a period.

Interest Paid

This represents the amount paid over a period for the use of borrowed money, or the cost of borrowing.

Net New Borrowing

Refers to the total amount of new debt acquired by a company or government, minus any debt that has been repaid during the same period.