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Chapter 15: Q.14 (page 347)

Draw an empty bank balance sheet, with the heading "Assets" on the left and the heading "Liabilities" on the right. Then place the following items on the proper side of the balance sheet.

a. Borrowings from another bank in the interbank loans market

b. Deposits this bank holds in an account with another private bank

c. U.S. Treasury bonds

d. Small-denomination time deposits

e. Mortgage loans to household customers

f. Money market deposit accounts

Short Answer

Expert verified

Assets-

b. Deposits this bank holds in an account with another private bank

c. U.S. Treasury bonds

e. Mortgage loans to household customers

Liabilities-

a. Borrowings from another bank in the interbank loans market

d. Small-denomination time deposits

f. Money market deposit accounts

Step by step solution

01

Introduction

Assets are the things your organization possesses that can give a future monetary advantage. Liabilities are what you owe different gatherings.

02

Explanation part (1)

Borrowings from one more bank in the interbank credits market are the liabilities of this bank as it should reimburse these advances to the next bank in future.

Stores held by this kept money with another private bank are its resources as it possesses them and can pull out them when required.

03

Explanation part (2)

U.S. Depository bonds are the resources of the bank as it claims them.

Little category time stores are the liabilities of the bank as it owes these stores to clients who own them.

Contract credits to family clients are the resources of the bank as it possesses them and will recuperate them from the families in future.

Currency market store accounts are the liabilities of the bank as it owes these stores to clients who own them.

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