Final answer:
To calculate the bank's net worth, we set up a T-account balance sheet, listed the assets as reserves, government bonds, and loans made totaling $620 and the liabilities as deposits of $400. The net worth is the difference between the two, resulting in a calculation of $220. This does not match any of the options provided.
Step-by-step explanation:
Analyzing Financial Assets and Liabilities
To analyze the financial assets and liabilities of the person in question, we will set up a T-account balance sheet for the bank and calculate the person's net worth. A T-account balance sheet is a simplified accounting statement that shows the assets on one side and the liabilities on the other side. To determine the net worth, we subtract the total liabilities from the total assets.
In this scenario, the bank's assets include:
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- Reserves: $50
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- Government bonds: $70
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- Loans made: $500
The total assets are the sum of reserves, government bonds, and loans made, which equals $620.
On the liabilities side, the bank has deposits of $400.
Therefore, the net worth of the bank is the difference between the total assets of $620 and the total liabilities of $400, giving us a net worth of:
$620 (Total Assets) - $400 (Deposits) = $220 (Net Worth)
However, none of the multiple-choice options provided matches this calculation. This suggests that there may be a mistake either in the question or the options provided. Please review the data and ensure that all the figures are correct. As calculated, the net worth would be $220, which is not listed in the options.