Question

What are "Due To" accounts? Choose one

- Accounts held in US banks by foreign banks to facilitate transactions for the benefit of the correspondent banks' customers.
- Accounts held in foreign banks by US banks
-Accounts held by individuals in US banks
- Accounts held by individuals in foreign banks

Answer 1

"Due To" accounts are accounts held in foreign banks by US banks and are used to facilitate transactions for the benefit of their customers.

Step-by-step explanation:

"Due To" accounts refer to accounts held in foreign banks by US banks. These accounts are used for various purposes, such as facilitating transactions for the benefit of the correspondent banks' customers. Banks play a crucial role in the economy by acting as financial intermediaries, matching the financial capital supplied by savers with the demand for loans from borrowers. They utilize balance sheets to list their assets (such as loans, bonds, and reserves) and liabilities (mainly deposits). Banks can protect themselves against risks by diversifying their loans or holding a larger proportion of assets in bonds and reserves.