Question

2. Which of the following is true regarding the balance sheet of a commercial bank? a. Banks make a profit when the value of their assets are greater than the value of their liabilities b. Loans given to consumers are considered a liability C. Demand deposits are considered a liability d. Savings accounts are considered an asset e. Loans from the Federal Reserve are considered an asset

          2. Which of the following is true regarding the balance sheet of a commercial bank?
a.
Banks make a profit when the value of their assets are greater than the value of their
liabilities
b. Loans given to consumers are considered a liability
C. Demand deposits are considered a liability
d. Savings accounts are considered an asset
e.
Loans from the Federal Reserve are considered an asset
        
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Added by Jennifer L.

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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2. Which of the following is true regarding the balance sheet of a commercial bank? a. Banks make a profit when the value of their assets are greater than the value of their liabilities b. Loans given to consumers are considered a liability C. Demand deposits are considered a liability d. Savings accounts are considered an asset e. Loans from the Federal Reserve are considered an asset
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Transcript

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0:00 Hello everyone.
00:01 So the question says that which of the following is true about banks? so options are given amongst the option option c is correct.
00:11 That says through the checking account they facilitate bents providing medium of exchange.
00:19 We can say this because banks charge higher interest rate when they lend money and give lower interest rate to do...
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