A bank's reserves are classified on its balance sheet as:

1. Balance sheet placement follows who owes whom. 2. A balance sheet is an accounting tool that lists assets and liabilities. 3. For a bank, the assets are the financial instruments the bank is holding. 4. Its reserves are exactly such an instrument. 5. Loans made by the bank are assets for the same reason. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 13 'Money and Banking'_