Question

Which of the following would be considered an asset on a bank's balance sheet? a. ​Demand deposits b. ​Savings accounts c. ​Loans from other banks d. ​A consumer loan

Answer 1

Answer:

b. ​Savings accounts

Explanation:

Assets are resources controlled by an entity as a result of past events for which future economic benefits would flow to the entity.

A savings account balance would be reported as cash and cash equivalent under the current assets section of the balance sheet.

Other options given are liabilities.

Answer 2

Answer:

D

Explanation:

Consumer loan

Banks like any other individual or company have general assets and liabilities . There are asset accounts that make money for the bank. For example, cash, government securities, and interest-earning loan accounts are all a part of a bank's assets.

A bank can have different types of assets, including physical assets, such as equipment and land; loans, including interest from consumer and business loans; reserves, or holdings of deposits of the central bank and vault cash; and investments, or securities.

Loans, such as mortgages, are a relevant asset for banks because they generate revenue from the interest that the customer pays on the loan. Examples of interest loans include consumer loans, such as home loans, personal loans, automobile loans, and credit card loans, and examples of business loans include real estate development loans and capital investment loans.