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here is a simplified balance sheet of a commercial bank...

Question: here is a simplified balance sheet of a commercial bank...

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Here is a simplified balance sheet of a commercial bank. Which of the following statements is correct? Assets Cash and reserves Financial assets Loans to other banks Liabilities $2m $27m $10m $55m $6m $100m Total liabilities $45m $32m $20m Unsecured borrowing Loans to households and firms.. Fixed assets Total assets $97m O The banks net worth is its cash and reserves of $2 million. O The banks leverage is 33.3. The banks base money consists of cash and reserves and financial assets. Secured borrowing is borrowing with zero default risk

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