Multiple choice

A checking deposit in a bank is considered __________ of that bank.

  1. net worth

  2. a liability

  3. an asset

  4. a capital
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A checking deposit (like a checking or current account) represents money the bank owes to the customer. From the bank's perspective, customer deposits are liabilities because the bank must return this money on demand, making the bank the debtor.

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