Q194
In commercial banks, subordinate debentures and subordinate notes are considered as
A.
stated rates
B.
banks debentures
C.
banks liabilities
AnswerD.
banks deposits
Answer: Option C
Solution
Answer: Option C
Solution:
In commercial banks, subordinate debentures and subordinate notes are considered as banks liabilities. The deposit itself is a liability owed by the bank to the depositor. Bank deposits refer to this liability rather than to the actual funds that have been deposited. When someone opens a bank account and makes a cash deposit, he surrenders legal title to the cash, and it becomes an asset of the bank.