The Largest Liability on the Balance Sheet of Most Banks

question 150

Multiple Choice

The largest liability on the balance sheet of most banks is its

• A)loans.
• B)holdings of securities.
• C)deposits with the Federal Reserve.
• D)checking account and savings account deposits of its customers.
• E)vault cash.

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Definitions:

Ex-dividend Date

The date on which stocks are traded without the right to receive the next dividend payment, determining who will receive the dividend.

Dividend Payment

A portion of a company's earnings distributed to shareholders, usually on a regular basis.

Stock Ownership

Stock ownership refers to the possession of shares in a corporation, which represents a claim on part of the company's assets and earnings.

Residual View

In corporate finance, this concept suggests that dividends should be paid from the residual or remaining equity after all project investments with positive NPV have been funded.