Final answer:
A nine-month insurance policy paid in advance would be reported as a current asset on a balance sheet. The other items mentioned are considered non-current assets due to their long-term nature.
Step-by-step explanation:
Among the options provided, a nine-month insurance policy paid in advance would be reported as a current asset. Current assets are resources that are expected to be converted into cash, sold, or consumed within one year or one operating cycle, whichever is longer. The loan given that is due in three years, the land expected to be used in five years, and the building that will be used over the next four years are all considered non-current assets as they do not meet the criteria of being short-term in nature.
The answer to why assets listed on a bank's balance sheet may not actually be in the bank has to do with the practice of fractional-reserve banking, where banks hold only a fraction of the bank's deposits as reserves, lending out the remainder. As for the willingness to pay more or less for a loan in the secondary market, it depends on factors such as the borrower's creditworthiness, changes in the economy's overall interest rates, and the profitability of the borrowing firm.