Bank's Balance Sheet: Deposits as Liabilities and Loans as Assets
On a bank's balance sheet, customer deposits are recorded as liabilities because they represent a debt the bank owes and must repay in the future. Conversely, loans issued by the bank are considered assets, as they represent a future claim on repayment from borrowers.
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Introduction to Macroeconomics Course
Ch.6 The financial sector: Debt, money, and financial markets - The Economy 2.0 Macroeconomics @ CORE Econ
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Learn After
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