Question

A home mortgage loan made by a commercial bank is which of the following?

A. A liability for the bank
B. An asset for the commerical bank
C. A part of M1, but not part of M2
D. Entered on the left-hand side of the equation of exchange

Answer 1

Answer:

A home mortgage loan made by a commercial bank is which of the following?

An asset for the commercial bank

Explanation:

An asset for the commercial bank, it becomes an asset because it generates interest for the bank which are paid by customers that took the home mortgage loan