Northern Bank: Balance Sheet Assets Liabilities
Reserves $800 Deposits $10 000
Loans $11 200 Capital $2000
$12 000 $12 000
TABLE 26-6
Refer to Table 26-6.Northern Bank holds cash in its vault and has some deposits in its account at the central bank.Under which category on its balance sheet are these funds included?

Question

Quizplus · Accepted Answer

Cash held in the vault and deposits in the account at the central bank are both considered reserves, which are listed on the asset side of the balance sheet.