Which of the Following Is a Liability of a Bank

question 16

Multiple Choice

Which of the following is a liability of a bank and an asset of its customers?

• A)deposits of its customers and loans to its customers
• B)deposits of its customers but not loans to its customers
• C)loans of its customers but not the deposits of its customers
• D)neither the deposits of its customers nor the loans to its customers

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Definitions:

Average Cost

The total cost of production divided by the quantity of output produced, representing the per unit cost of production.

Signaling Mechanism

A method or action taken to convey information or intentions between parties, often used in economics and biology to indicate quality or status.

Screening Mechanism

A process or method used by entities to filter or select suitable candidates or options based on specific criteria.

Engagement Ring

A piece of jewelry often featuring diamonds or other gemstones, traditionally given during a proposal to symbolize intent to marry.