SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Economics A Level

» Start this Course
(Practice similar questions for free)
Question:

What is the Idea between Assets and Liability?

Author: go kys



Answer:

-When a Commercial Bank dishes out Loans to Customers, Money is Created -The Customer becomes a Debtor to the Bank. They must Repay the Loan + Interest on it -Hence, the Loan becomes an ASSET for the Bank -The Customers Deposit is an LIABILITY for the Bank


0 / 5  (0 ratings)

1 answer(s) in total

Author

go kys
go kys