Help needed! introduction to economics!?

Question

The following question deals with the process of money creation in an economy.

a. Define assets and liabilities. What are the important examples of any bank's assets and liabilities?

Answer 1

Assets represent future money.  Anything that can or will be converted to cash is an asset.  Liabilities represent future payments.  All liabilities must eventually be paid for.  A bank's most important asset is its loans (for which it will receive cash) and its most important liability is its deposits (which must be paid back).