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Which of the following is an asset of a commercial bank?

Economics
WAEC 2013

Which of the following is an asset of a commercial bank?

  • A. Reserve funds
  • B. Shareholders capital
  • C. Customers' deposits
  • D. Treasury bills
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Correct Answer: Option D
Explanation

Treasury securities include short term bills, intermediate term notes and long term bonds. These bonds are an asset for banks in the same way that loans are an asset. The bank will receive a stream of payments in the future.

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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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