Question

On a bank's T-account, which are part of the bank’s assets? a. both deposits made by its customers and reserves b. deposits made by its customers but not reserves c. reserves but not deposits made by its customers d. neither deposits made by its customers nor reserves

Answer 1

Answer:

The correct answer is C

Explanation:

Bank asset is the assets which represent the ownership of the value capable of being converted into cash. So, the reserve which the banks hold or refrain from using will be classified as the asset for the bank. And the deposit made by the customer will be classified as the current liability as the bank allows the customers to use their deposits whenever they want to use.

Therefore, the reserve is a part of bank asset whereas the deposits will not be a part of bank asset.