The Bank Balance Sheet
1) Which of the following statements are true?
A) A bank"s assets are its sources of funds.
B) A bank"s liabilities are its uses of funds.
C) A bank"s balance sheet shows that total assets equal total liabilities plus equity capital.
D) A bank"s balance sheet indicates whether or not the bank is profitable.
2) Which of the following statements is false?
A) A bank"s assets are its uses of funds.
B) A bank issues liabilities to acquire funds.
C) The bank"s assets provide the bank with income.
D) Bank capital is recorded as an asset on the bank balance sheet.
3) Which of the following are reported as liabilities on a bank"s balance sheet?
B) Checkable deposits
D) Deposits with other banks
4) Which of the following are reported as liabilities on a bank"s balance sheet?
A) Discount loans
C) U.S. Treasury securities
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