Final answer:
The false statement is that bank capital is an asset on the balance sheet. Bank capital actually represents the bank's net worth or equity, not an asset.
Step-by-step explanation:
The false statement in the choices provided about a bank's balance sheet is d. Bank capital is recorded as an asset on the bank balance sheet. In reality, bank capital is considered the bank's net worth and reflects the owners' stake in the bank, which is a residual interest after all liabilities have been accounted for.
A bank's assets are indeed its uses of funds; these include cash in vaults, loans to customers, and securities owned, among others. It is true that banks issue liabilities, such as deposits and borrowings, to acquire funds that can be utilized for offering loans or purchasing investments. Also, the bank's assets typically generate income, which might come from interest on loans, bond yields, or other investment returns.
It is essential to understand that bank capital is not an asset but rather a part of equity on the balance sheet; it survives as the balance after subtracting total liabilities from total assets.