I guess you could say non cash assets, right?

Interest is nothing but rent.

That assets, A for assets, is equal to

Malibu Equity and Investments.

So its assets.

To get some future benefit.

These are demand accounts.

So for example, cash is an asset.

I'll do that in yellow.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

The bank is going to be able to fulfill its promise.

Notice, when I did this balance sheet

liabilities plus equity.

I don't want to draw this box.

And rich, eh?

The firm went under due to lack of capital.

In a world without leverage so if I didn't have all this

So this is just another visual representation that

It doesn't sound like we borrowed money or anything.

Remember liabilities plus equities are equal to assets.

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

But let's say its assets are worth 1 million.

Do Low Interest Rates Ensure High Asset Prices?

And what I wrote here is, it has 4 billion of liabilities.

Now, who are they accountable to?

This is cash above and beyond what's needed in the cash register.

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

These are my assets, and these are my liabilities.

So I have 300, 400, 700, 1,000.

Let's stick with gold.

Deposits equal liabilities from a bank's point of view.

So you can say assets of the firm.

nothing but a communist cell.

He is a man of wealth.

He's a wealthy man.

Or across the street from each other.

So the total assets were 5 billion in assets.

Supporting financially

I met him on the train.

less capital intensive that there's less money that's required

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

And then the equity is, essentially we would look at this formula.