Final answer:
The two broad classifications of assets and claims are loans and bonds. Loans are repayments with interest while bonds, often issued by governments, are low-risk assets bought with deposited money, providing banks with a stream of future payments.
Step-by-step explanation:
The two broad classifications given to both assets and claims in the context of banking and finance are loans and bonds. Loans are a type of asset for banks because they represent money that will be repaid over time with interest by borrowers. Bonds, the second category of bank asset, are bought by banks using the money received from deposits. These generally include bonds issued by the U.S. government, which are regarded as low-risk investments as they come with a virtual guarantee of repayment, albeit with a low-interest rate.
An example provided is the Safe and Secure Bank, which holds bonds valued at $4 million, illustrating how bonds serve as an asset generating a stream of payments over time. This mechanism of owning government and other types of bonds is crucial in the financial strategy of banks, helping them manage their asset-liability time mismatch.