Question

Which of the following is not an asset for a bank?

Group of answer choices

Mortgage loans made by the bank.

Excess reserves.

Holding of U.S. government securities.

Checking account balances held by depositors.

Answer 1

Option D (Checking account balances held by depositors) is the correct answer.

The banks assets include equipment, land, mortgage loans, reserves, the interest gains on lending, holding deposits of central bank, holding securities, overdraft, vault cash, investment and others.

All the deposits that are made in the bank, are the liabilities of a bank. As they are required to give that money back to their original owners whenever they require. The deposits are made by the consumers so that they can keep their money safe or either gain interest on the deposit amounts.

The banks owes all the money of people that is deposited to them including saving account, current account, salary account, and also the checking account balances.

Therefore, all the others are assets except the checking account balances held by depositors according to this question.

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