Question

On a bank's balance sheet, ________ are assets and ________ are liabilities.

a) reserves; loans and transactions deposits
b) loans and transactions deposits; reserves
c) transactions deposits; reserves and loans
d) reserves and loans; transactions deposits

Answer 1

HEY.

C) IS THE CORRECT ANSWER.

Answer 2

Hey Friend.

C) is the answer. Transaction deposit is an asset since it increases what you already have, while reserves and loans decrease what you have, because you'll have to take out.