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Customer loans are classified on the Commercial Banks (CB) balance sheet as A. liabilities, because the customer may default on the loan B. liabilities, since
Customer loans are classified on the Commercial Banks (CB) balance sheet as
A. | liabilities, because the customer may default on the loan | |
B. | liabilities, since the CB must transfer funds to the borrower at the initiation of the loan. | |
C. | Assets, because CBs originate and monitor loan portfolios as a part of their revenue generation process. |
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