Why must a banks assets always equal its liabilities?
Question:
Why must a bank’s assets always equal its liabilities?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (11 reviews)
Banks use Taccounts to record financial transactions On one side of the Taccount the ba...View the full answer
Answered By
Simon kingori
I am a tier-one market researcher and content developer who has been in this field for the last six years. I’ve run the freelancing gamut; from market research, data mining and SEO/SMM to copywriting, Content Development, you name it, I’ve done it. I’m extremely motivated, organized and disciplined – you have to be to work from home. My experience in Freelancing is invaluable- but what makes me a cut above the rest is my passion to deliver quality results to all my clients- it’s important to note, I've never had a dissatisfied client. Backed by a Masters degree in Computer Science from MOI university, I have the required skill set and burning passion and desire to deliver the best results for my clients. This is the reason why I am a cut above the rest. Having taken a Bsc. in computer science and statistics, I deal with all round fields in the IT category. It is a field i enjoy working in as it is dynamic and new things present themselves every day for research and exploration.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
The Macro Economy Today
ISBN: 978-1259291821
14th edition
Authors: Bradley R. Schiller, Karen Gebhardt
Question Posted:
Students also viewed these Business questions
-
True or False: 1. Financial institutions can create money by making loans. 2. If you go into a bank and borrow $1,000, the bank probably will simply add $1,000 to your checking account at the bank,...
-
Multiple Choice Questions 1. If a publicly traded company is trying to maximize its perceived value to decision makers external to the corporation, the company is most likely to understate which of...
-
Multiple Choice Questions 1. An asset can be disposed of by: A) Discarding it. B) Selling it. C) Exchanging it for another asset. D) Donating it to charity. E) All of the above. 2. Natural resources:...
-
Explain the purpose, uses and advantages of classified statements of cash flows prepared in accordance with IAS 7.
-
A warehouse operator has 24,000square feet of floor space in which to store two products. Each unit of product I requires 20 square feet of floor space and costs $12 per day to store. Each unit of...
-
Greenock Limited has the following information available for accruals for the year ended December 31, 2025. The company adjusts its accounts annually. 1. The December utility bill for $425 was...
-
2. How are preacquisition earnings accounted for by a parent under the equity method? How are they accounted for in the consolidated income statement?
-
According to the National Association of Colleges and Employers, the average starting salary for new college graduates in health sciences is $51,541. The average starting salary for new college...
-
Flexible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made...
-
Find the 8-bit data stream for each case depicted in Figure 4.36. Time a. NRZ-I Time b. differential Manchester
-
What percentage of your monthly bills do you pay with (a) cash, (b) check, (c) credit card, and (d) automatic transfers? How do you pay off the credit card balance? How does your use of cash compare...
-
Does the fact that your bank keeps only a fraction of your account balance in reserve make you uncomfortable? Why dont people rush to the bank and retrieve their money? What would happen if they did?
-
Effect of Stock Dividend Travanti Company has a history of paying cash dividends on its common stock. Although the firm has been profitable this year, the board of directors is planning construction...
-
Let $N$ be a positive integer. Consider the relation $\circledast$ among pairs of integers $r, s \in \mathbb{Z}$ defined as $r \circledast s$ when $r-s$ is an integer multiple of $N$. Prove that...
-
Draw a circuit diagram for a typical home hair dryer. To which form (or forms) of energy is electric potential energy converted when you use the dryer?
-
Draw a vector field diagram for particles carrying charges \(+2 q\) and \(-q\) separated by a distance \(r\). Comment on the significance of the vector diagram.
-
(a) Show that the Jones matrix of a polarization analyzer set at angle \(\alpha\) to the \(X\)-axis is given by \[ \underline{\mathbf{L}}(\alpha)=\left[\begin{array}{cc} \cos ^{2} \alpha & \sin...
-
Let \(\mathbf{V}(t)\) be a linearly filtered complex-valued, wide-sense stationary random process with sample functions given by \[ \mathbf{v}(t)=\int_{-\infty}^{\infty} \mathbf{h}(t-\tau)...
-
A water tank is filled with a hose and then drained. The table shows the number of gallons y in the tank after 1 minutes. The following function f models the data in the table. Solve the equation...
-
Which task is performed by a book-keeper? A. Analysing the trading results B. Entering transactions in the ledger C. Preparing year-end financial statements D. Providing information for...
-
Brenda has $5,500 of before-tax dollars available for a one-time investment. She is in the 25% bracket and expects to remain in this bracket indefinitely. She can invest directly in a taxable bond...
-
Martha, who is in the 35% tax bracket, has $40,000 of before-tax income with which she wants to make a one-time investment. She wants to put $20,000 of this income in a deductible H.R. 10 plan, and...
-
Harry wants to contribute either $5,500 (BT$) to a traditional deductible IRA or $5,500 (AT$) to a Roth IRA. His current tax rate is 30% for ordinary income and 15% for capital gains. He expects his...
-
Saly paid $52,000 a year paid on a weekly basis. last pay she had $250 withheld in Income Tax, $48.97 for CPP and $15.80 for EI. an additional $and 25.00 in tax are deducted each pay. She allowed to...
-
Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits...
-
Which of the following partnership items are not included in the self-employment income calculation? Ordinary income. Section 179 expense. Guaranteed payments. Gain on the sale of partnership...
Study smarter with the SolutionInn App