For a bank, the main liability is the ____________________.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. deposits.
- For a bank, the main liability is the deposits held by its customers.
- Deposits represent funds entrusted to the bank by individuals, businesses, and other entities for safekeeping, and they are considered a liability because the bank is obligated to repay these funds on demand or according to the terms agreed upon with depositors.
- This includes various types of deposits such as savings accounts, checking accounts, fixed deposits, and other deposit products offered by the bank.