Question
(1) What are the items of assets in the bank balance sheet (BS)? The assets are items that the bank owns. This includes loans, securities,
(1) What are the items of assets in the bank balance sheet (BS)? The assets are items that the bank owns. This includes loans, securities, and reserves.
(2) What are the items of liabilities in the bank balance sheet? Liabilities are items that the bank owes to someone else, including deposits and bank borrowing from other institutions.
(3) What is the largest asset item? the money supply has now taken over as the Fed's largest asset.
(4) What is the largest liability item? Long-term debt, also known as bonds payable, is usually the largest liability
(5) What are sources of bank borrowings? The main source of funds of commercial banks is deposits. The other sources of funds are borrowings from other banks, capital, reserves and surplus.
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