Final answer:
In the comparison of Jack's debt of $25, the balances of 530 and 515 are greater, while -510, -530, -550, and $5 are less. Additionally, a T-account balance sheet for the bank shows assets, liabilities, and a net worth of $220.
Step-by-step explanation:
In Jack's scenario, a debt of $25 is being compared to various account balances. To determine which balances are greater than or less than the debt of $25, we simply compare the numbers:
-
- Greater than Jack's Debt: These are positive balances that are higher than $25.
-
- Less than Jack's Debt: These are either negative balances or positive balances lower than $25.
Analysis for Each Account Balance:
-
- 530 - Greater than Jack's Debt
-
- 515 - Greater than Jack's Debt
-
- -510 - Less than Jack's Debt (negative balance)
-
- -530 - Less than Jack's Debt (negative balance)
-
- -550 - Not in the initial options provided, but it is also Less than Jack's Debt (negative balance)
-
- $5 - Less than Jack's Debt, but it's a positive balance just below $25
To summarize the correct categories:
A- Greater than Jack's Debt: 530, 515
B- Less than Jack's Debt: -510, -530
C- Less than Jack's Debt (since it wasn't specified in the question, it can be assumed additional correct answers): -550, $5
D- NONE: does not apply as all balances can be categorized
T-account Balance Sheet for the Bank:
Assets:
-
- Reserves: $50
-
- Loans: $500
-
- Government Bonds: $70
Total Assets = $50 + $500 + $70 = $620
Liabilities:
Net Worth = Total Assets - Total Liabilities = $620 - $400 = $220
The bank's net worth in this example is $220.