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It also agrees to pay its liabilities such as pension contributions.
First, a government-controlled central bank might use monetary expansion to inflate away nominal liabilities such as government debt.
Ministers wanted to avoid "contingent liabilities" such as providing pensions, unemployment pay and beefed up security, he said.
If off-balance sheet liabilities such as public sector pensions are included we are already well beyond that.
If governments' accounts included future liabilities such as unfunded pension obligations, most budgets would still be in deficit.
Banks take in short-term liabilities such as deposits and turn them into long-term assets such as mortgages.
It would represent Britain's share of long-term liabilities such as pensions – one of the many issues that would need to be resolved during the article 50 talks.
Any suitor for Warner-Lambert and American Home must also consider potential liabilities, such as those American Home faces regarding the diet drug fen-phen.
Companies working on self-driving cars, such as Alphabet and Ford, say their technology can slash that number by removing human liabilities such as texting, drunkenness, and fatigue.
However, the decision could undermine some of its defences in employment cases, opening it up to extra liabilities, such as insurance.
At least 75% of banks' total lending will have to be funded with stickier liabilities such as retail deposits and wholesale borrowing maturing in more than a year.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com