Which of the Following Are Not Reported as Assets on a Bank's

question 64

Multiple Choice

Which of the following are not reported as assets on a bank's balance sheet?

• A) Cash items in the process of collection
• B) Deposits with other banks
• C) U.S. Treasury securities
• D) Checkable deposits

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Definitions:

Liable

Legally responsible or obligated.

Compensating Balance

A compensating balance is a minimum account balance that a borrower must maintain with a lender as part of the loan agreement.

Effective Interest Rate

The real rate of interest earned or paid on an investment or loan, taking into account the effect of compounding.

Pledging Receivables

Borrowing money using receivables as collateral.