Principles of Macroeconomics / Unit 11 MAC 1010 short lesson, about 20 seconds
The Bank Balance Sheet
Captions available
The idea
A bank's assets are its reserves, loans and bonds. Its liabilities are its deposits, because it owes them back. Net worth is assets minus liabilities, also called bank capital.
In practice
On the sheet, assets always equal liabilities plus net worth.
Where people slip
A loan is an asset to the bank and a liability to the borrower.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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