No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

Essential Questions

What is a balance sheet?

Posted on May 24, 2014 at 9:35 AM

A balance sheet (or t-account) keeps record of a commercial bank's assets and liabilities after each banking transaction.


An example of a liabilitiy is a demand deposit (checkable deposit) because the bank must pay its depositors on demand.  An example of an asset is a loan issued by the bank because the debtor must repay the loan amount to the bank.


This No Bull Review video explains how to record a bank's transactions using a balance sheet.  It also discusses the role of required reserves and excess reserves in money creation.


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AP Macroeconomics Unit 4 Monetary Policy

Categories: AP Macroeconomics, Macro Unit 4 Monetary Policy

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