Northern Bank: Balance Sheet

question 64

Multiple Choice

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 extends credit to its customers in the form of household mortgages and lines of credit.Under which category of the balance sheet do these fall?

• A)Reserves
• B)Loans
• C)Liabilities
• D)Deposits
• E)Capital

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Definitions:

Collective Efficacy

The shared belief in the ability of a group to achieve common objectives and influence outcomes in their community.

Success

Refers to the accomplishment of an aim or purpose.

Equifinality

A principle that a given end state can be reached by many potential means or from different starting points in complex systems.

Systems Theory

A conceptual framework that examines entities as complex systems made up of interrelated components, suggesting that understanding the whole system requires looking at the interconnections and processes within it.