List the various categories into which a bank's liabilities are divided?
What will be an ideal response?
A bank's liabilities are divided into the following.
a. Demand deposits: These are funds loaned to the bank by depositors.
b. Short-term borrowing: This is comprised of short-term loans that a bank has obtained from other financial institutions
c. Long-term debt: This is defined as debt that is to be repaid in a year or more.
d. Stockholders' equity: This is defined as the difference between a bank's total assets and liabilities.
You might also like to view...
The Keynesian perspective focuses on the demand-side of the economy;
What will be an ideal response?
Luis operates a cherry orchard in Northern Oregon and sells the cherries in a perfectly competitive market at a price of $1.70 per pound. Last month Luis sold 2,000 pounds of cherries. His fixed cost of production was $800 and his average variable cost was $1.00 per pound. What was his profit?
a. $600 b. $800 c. $2,600 d. $3,400