b assets plural : the items on a balance sheet showing the book value of property owned
types of assets
cash
for a non-bank (individual or company)
physical cash (currency) on hand
checking/savings account balances
for a bank:
physical cash (currency)
(in vaults, at tellers, in transit to central bank for exchange)
account balances at other commercial banks
account balance at the central bank
municipal, corporate, or government bonds owned
total assets (on a company's balance sheet)
Sum of book values of assets listed.
exchanging assets
Suppose you purchase a bicycle with money. Total assets for the seller remain the same:
inventory of bicycles is reduced, and cash (currency or bank balance) increases.
In law, after you deposit currency, who owns that currency?
safe deposit box
You own the cash.
bailment
2. (Law) A delivery of goods or money by one person to
another in trust, for some special purpose, upon a
contract, expressed or implied, that the trust shall be
faithfully executed. --Blackstone.
bank checking account
The cash you deposited is now a bank asset.
The bank's balance sheet has grown (both assets and liabilites increased).
You have an IOU from the bank.
The bank promises to pay an equivalent amount upon demand.
(withdrawal, check, card purchase, etc.)
Your assets total remains the same.
Only its composition has changed:
in place of the currency,
you are owed money by the bank.
