When a customer deposits currency in a bank, the Cash Account (an Asset account) increases for the bank, but the Checkable Deposit Account (a ________________ account) of the bank also increases to "balance the books".

Respuesta :

Answer: Liability account

Explanation:

This is a case of looking it from bank's point of view or from the books of the bank.

Customer has deposited their money in the bank. For a certain fee. The money is secured by the bank and can be withdrawn by the customer anytime they want to. Hence cash is increased but it is still a liability for the bank since they do not have a claim to that money. It's the customers assets they are securing.