For a bank, the main liability is the ______.
Answer & explanation
Correct answer: option 1
- A deposit generally refers to money held in a bank account. A deposit can also be the funds used as security or collateral for the delivery of goods or services.
- Bank liabilities refer to a debt or financial obligation. Bank liabilities are the things owed by the bank, such as interest owed to other banks and other debts owed.
- Thus, deposits are main liabilities for a bank.