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The minimum lending rate of a bank is a component of its

Commerce
JAMB 2016

The minimum lending rate of a bank is a component of its

  • A. current assets
  • B. debit balances
  • C. credit balance
  • D. fixed assets
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Correct Answer: Option A
Explanation

the minimum lending rates of a bank depends on its current assets. Current assets here are balance sheet assets that can be converted to cash within one year or less. Accounts that are considered current assets include cash and cash equivalents, marketable securities, accounts receivable, inventory, prepaid expenses, and other liquid assets.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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