Final answer:
The money listed under assets on a bank balance sheet may not actually be in the bank due to various reasons, such as loans to borrowers or investments in other financial assets. Reserves held at the Federal Reserve Bank are also considered assets.
Step-by-step explanation:
The money listed under assets on a bank balance sheet may not actually be in the bank due to various reasons. One reason is that the bank may have loaned out the money to borrowers, so it is no longer physically present in the bank. Another reason is that the bank may have invested the money in other financial assets, such as bonds or securities. Additionally, the money listed as assets may also include funds that the bank holds at the Federal Reserve Bank, known as reserves.