Final answer:
The debts or liabilities of commercial banks and thrift institutions due to deposits made by their customers are known as deposit liabilities.
Step-by-step explanation:
The debts or liabilities of commercial banks and thrift institutions are known as deposit liabilities. These institutions view the money deposited into accounts such as checking accounts, savings accounts, or certificates of deposit as liabilities because they owe this money to their customers, who may withdraw it at any time. For example, in the hypothetical balance sheet for the Safe and Secure Bank, the institution holds $10 million in deposits, which it must be ready to pay back to its depositors on demand. Additionally, while banks use some of the deposited funds to issue loans or to buy low-risk assets like government bonds, the liabilities represented by their customers' deposits always remain an obligation.