The principal and interest What is the true definition of Compound interest? Main part amount you are borrowing

Net worth (equity or capital) - difference between assets and liabilities

net worth = assets - liabilities

Loans are assets of the bank and one of the uses it makes of its funds. They produce a flow of income in the form of interest payments.

Deposits are liabilities of the bank—amounts the bank owes to others—and one source of its funds

Chose the correct listing of Bank Assets:

Cash, reserves,deposit of other banks, securities, loans, other assets
Chose the correct listing of Bank Liabilities:
Checking deposits, nontransaction deposit(saving deposit, small and large time deposit), borrowings and other liabilitiesa net worth
Chose the incorrect listing of Bank Liabilities:
Checking deposits, nontransaction deposit(saving deposit, small and large time deposit), borrowings and other liabilitiesa net worth

Select the incorrect statement about Checking deposits:

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  This category covers deposits that customers use to purchase goods and services.
  
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  People spend these deposits by writing checks, swiping debit cards, and authorizing electronic payments. Checking deposits are part of the narrow measure of the money supply, M1.
  
• 
  Some checking accounts pay no interest.
  

Select the incorrect statement about Nontransaction deposits:

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  Nontransaction Deposits - These deposits cannot be spent directly with checks or debit cards. However, they pay higher interest rates than checking deposits.
  
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  Nontransaction deposits include both savings deposits, which can be withdrawn from a bank at any time, and time deposits, which are committed for a fixed period of time. Time deposits are commonly called CDs, for certificates of deposit.
  

A bank can borrow in several ways. And one of such borrowing types is Federal funds, which can be defined as:

• 
  Federal funds First, a bank can borrow from another bank, one that has more funds than it needs for other purposes. Loans from one bank to another are called federal funds. They are usually overnight loans, meaning they have a term of one day.
  

What kind of borrowing is a repurchase agreement?

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  Repos - A bank can also borrow from a corporation or financial institution that has spare cash. This borrowing occurs through a repurchase agreement, or repo (sale of a security with a promise to buy it back at a higher price on a future date)
  

Cash items in Asset side of the balance sheet include several components, including Vault cash. Vault cash is: