Question

Loan from bank is ___ liability
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Answer 1

Answer:

THE

Explanation:

PLEASE MARK IN BRAINLIEST

Answer 2

Loan from bank is a long-term liability.

Liability definition:

"A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services."

Loan from Banks:

• From the perspective of banks, loans are their first category of asset, since the borrower is leagally indebted to pay the loan over a particular period of time with an interest amount.
• In most circumstances the bank which provides a home loan would collect additional payments under processing and handling fees and would sell the loan to another banking or financial instituition, who would then collect the loan payments.
• When the bank is directly handling the loan market from the borrowers it is called as primary loan market and when the loan payment is hand-overed to another financial instituition is called as secondary loan market.