Unit 4 Notes - Balance Sheet
A Balance sheet is a summary of bank's financial position at a given time.
A Balance sheet uses a T chart to illustrate this more clearly.
Key Things to Remember -
Liabilities - What you OWE
Assets - What you OWN
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Let it be known that in the fractional reserve banking system, the bank holds a fraction of the total money supply which is held in reserves as currency.
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ReplyDeleteYou could have included the formula RR+ER=DD, this is critical in understanding the money creation process.