Which of the following is a bank asset? checkable deposits savings deposits borrowings in the federal funds market cash items in the process of collection Which asset is sometimes referred to as a task secondary reserves? vault cash U. S. government securities repurchase agreements feder4al funds If the value of banks loans declines, what is the corresponding reduction in a liability entry that the bank makes? Deposits are reduced by the amount of the decline in the value of the loan. Borrowings are reduced by the amount of the decline in the value of the loan. Net worth is reduced by the amount of the decline in the value of the loan. Cash items in the process of collection are reduced by the amount of the decline in the value of the loan. Banks make use of the federal funds market in part 10 pay their tax liabilities. manage liquidity risk. deal with moral hazard. deal with adverse selection