A balance sheet fora typical bank is given in Table. The
balance sheet summarizes the bank”s assets and liabilities.
Assets are valuable items that the bank owns and consist
primarily of the bank:s reserves and loans. Liabilities are
valuable items that the bank owes to others and consist
primarily of the bank”s deposit liabilitis to its depositors. In
table, the bank”s assets (reserves and loans) total $million. The
bank”s liabilities (deposits) total $ 1 million. A banking firm”s
assets must always equalliabilities.
