Banks are financial intermediaries that: A. have customer deposits as its primary asset and loans to borrowers as their primary liability.

Answers

Answer 1

Answer:

False

Explanation:

Exactly the opposite is true: banks are financial intermediaries that have customer deposits as their primary liability, and customer loans as their primary asset.

The reason is that customer deposits can be withdrawn at any time (at least in theory), and the bank is obliged to give back the deposited money to the customer.

Loans, on the other hand, are assets, because they provide the bank with interset, and an asset is simply an economic resource that provides further economic gain to its owner.

Related Questions

I know that Stephen has a lot of money. His parents drive Mercedes. His dogs wear cashmere sweaters, and he paid cash for his Hummer. The conclusion of the argument is ____________

Answers

Answer: I know that Stephen has a lot of money.

Explanation:

The whole point of the reasoning behind this thought by the speaker was to prove that Stephen had a lot of money.

This is why the speaker explained why they believed that Stephen had a lot of money. They talked about the car his parents drove, the cashmere sweaters his dogs wear and his use of cash to pay for his Hummer all to come to the conclusion that Stephen has a lot of money.

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