Which of the following is a key difference between a nonfinancial firm's balance sheet and a bank's balance sheet?

A.

Firms cannot directly hold bank reserves

B.

Equity in a bank's balance sheet is typically called "bank capital"

C.

All of these answers are correct

D.

Loans are usually an asset of banks but a liability of firms

Suppose Short Bank has the following liabilities: deposits of 99 USD, borrowing from the Federal Reserve of 51 USD, bank capital of 50 USD. The reserve requirement is 10%. Which of the following statements is true:

A.

Short Bank definitely satisfies its reserve requirement, because it has borrowed from the Federal Reserve

B.

If Short Bank holds 10 USD of reserves, then it holds 0.1 USD of excess reserves

C.

If Short Bank holds 10 USD of reserves, then it holds 0.9 USD of excess reserves

D.

If Short Bank holds 9 USD of reserves, then it fulfills the reserve requirement

E.

There is not enough information provided to know if Short Bank fulfills the reserve requirement