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

The funds held in the bank's vault and account at the central bank are considered reserves, which are included in the assets section of the balance sheet.