Final answer:
Assets, liabilities, and equity represent different elements on a balance sheet. Assets are items of value that a firm or an individual owns. Liabilities represent what a company owes to others. Equity is the net worth of the company.
Step-by-step explanation:
Assets, liabilities, and equity represent different elements on a balance sheet, which is an accounting tool used to list a company's financial position.
Assets are items of value that a firm or an individual owns. In this case, the assets include reserves of $30, bonds worth $50, and loans worth $50.
Liabilities represent what a company owes to others. The liabilities here include deposits of $300.
Equity is the net worth of the company, which is calculated by subtracting liabilities from assets. In this case, the equity is $30.