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hey everyone Im mr. Willis and you will love economics bank balance sheets also known as T accounts or a visual record of fractional reserve banking within a bank these Ledgers display how banks use any deposits and available funds to create reserves and new loans for the purpose of lending put simply it shows the money that has been deposited into a bank and how the bank is using it for many students bank balance sheets are the bane of their existence when they see those t accounts on an exam question its like interest they taken deep into Mordor to costume back into the fiery chasm from whence it came but in this video Im gonna show you everything you need to know to not only understand and master T accounts but to conquer your fear of it it is a gift why thank you Boromir just trying to help this is a bank balance sheet the activities of all banks are divided into two categories liabilities and assets liabilities are the financial obligations that a bank must pay to an entity t