Which of the Following Is a Liability for a Bank

question 165

Multiple Choice

Which of the following is a liability for a bank?

• A)U.S.government securities
• B)deposits with the Fed
• C)checkable deposits
• D)consumer and business loans
• E)building and furniture

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Definitions:

Equity Multiplier

A financial ratio indicating how much of a company's assets are financed by shareholders' equity.

Total Assets

The sum of all resources owned by a company, valued in terms of the financial benefits they bring, and listed on the balance sheet.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including debts and other financial commitments.

Return on Total Assets

A financial ratio that measures a company's ability to generate net income from its total assets, indicating efficiency in asset use.