In commercial banks, subordinate debentures and subordinate notes are considered as

A. stated rates

B. banks debentures

C. banks liabilities

D. banks deposits

Answer: Option C

Solution(By Examveda Team)

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.