On a bank's balance sheet, the value of its assets must equal the value of its _____

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On a bank's balance sheet, the value of its assets must equal the value of its liabilities plus net worth. This is known as the accounting equation or balance sheet equation. It means that the funds raised by a bank through its liabilities and net worth are used to purchase assets that generate income for the bank. The value of assets and liabilities are reported at their book value or fair value, depending on the accounting standard applied by the bank.

On a Bank's Balance Sheet, the Value of Its Assets