A Bank Which Has Assets of $85 Billion and a Net

question 150

Multiple Choice

A bank which has assets of $85 billion and a net worth of $10 billion must have:

• A)liabilities of $75 billion.
• B)excess reserves of $10 billion.
• C)liabilities of $10 billion.
• D)excess reserves of $75 billion.

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Definitions:

Bill Of Lading

An official document issued by a carrier to acknowledge receipt of cargo for shipment, acting as a contract between the owner of the goods and the carrier.

Insurable Interest

Insurable interest exists when an individual or entity stands to suffer a financial loss or certain types of loss from the damage, loss, or destruction of the property or the life insured.

Document of Title

A legal document evidencing a person's legal right to control the disposal of goods, such as a bill of lading or warehouse receipt.

Bailees

Individuals or entities entrusted with temporary possession of someone else's property.