Multiple choice

Bank deposit refers to:

  1. The amount of money standing to the credit of a customer of a bank

  2. A term used by the Federal Reserve to refer to the total deposits of member banks

  3. The amount of money standing to the debit of a customer of a bank

  4. All of the above
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A Correct answer
Explanation

A bank deposit fundamentally refers to money standing to the credit of a customer in a bank account. This represents the customer's claim on the bank. The other definitions either refer to specific contexts (Federal Reserve terminology) or are incorrect (debit balance represents liability, not deposit).

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