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Question
Customer deposits are classified on a DI's balance sheet as
A. assets, because the DI uses deposit funds to earn profits.
B. liabilities, because the DI uses deposits as a source of funds.
C. assets, because customers view deposits as assets.
D. liabilities, because the DI must meet reserve requirements on customer deposits.
E. liabilities, because DIs are required to serve depositors.
Answer
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