Macro Unit 4, Question 2- Bank Balance Sheet

The video tutorial explains how to assess a bank's health by examining its assets and liabilities. It covers the concepts of reserves, loans, and other assets, as well as liabilities like deposits and loans from the Fed. The tutorial also discusses owner's equity and the importance of balancing a bank's balance sheet. It concludes by explaining how banks generate profit through interest rates and the role of demand deposits as liabilities.

What must be true for a bank's balance sheet to be considered balanced?

What is the significance of demand deposits for a bank?