[amp_mcq option1=”Treasury Bills” option2=”Commercial Papers” option3=”Certificate of Deposits” option4=”Junk Bonds” correct=”option3″]<\/p>\n
The correct answer is C. Certificate of Deposits.<\/p>\n
A liability is a financial obligation that a company or individual owes to another party. In the case of a bank, liabilities include deposits from customers, loans that the bank has made, and other debts that the bank owes.<\/p>\n
Treasury bills, commercial papers, and junk bonds are all types of investments that banks can make. However, these investments are not liabilities of the bank. Instead, they are assets that the bank owns.<\/p>\n
A certificate of deposit (CD) is a type of deposit account that a bank offers to customers. CDs are typically for a fixed period of time, and the bank pays interest on the deposit. CDs are considered to be a safe investment, and they are often used by people who are saving for retirement or other long-term goals.<\/p>\n
When a customer deposits money into a CD, the bank is essentially borrowing that money from the customer. The bank then uses that money to make loans to other customers or to invest in other assets. The customer is entitled to receive the interest that has been earned on the CD, as well as the original principal amount, when the CD matures.<\/p>\n
In conclusion, the correct answer to the question “Which of the following is a liability of a bank?” is C. Certificate of Deposits.<\/p>\n","protected":false},"excerpt":{"rendered":"
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