Which of the following is an asset of a commercial bank?
ECONOMICS
WAEC 2013
Which of the following is an asset of a commercial bank?
- A. Reserve funds
- B. Shareholders capital
- C. Customers' deposits
- D. Treasury bills
Correct Answer: D. Treasury bills
Explanation
Treasury securities include short term bills, intermediate term notes and long term bonds. These bonds are an asset for banks in the same way that loans are an asset. The bank will receive a stream of payments in the future.
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