If a Bank Has Liabilities Exceeding Its Net Worth

question 45

Multiple Choice

If a bank has liabilities exceeding its net worth:

• A)it will not be able to meet its desired reserve ratio.
• B)it is considered to be insolvent.
• C)it most likely is a heavy borrower from the Bank of Canada.
• D)none of the above is necessarily true.

---

Definitions:

Intrinsically Satisfying

An activity or outcome that is rewarding in and of itself, without any need for external recognition or reward.

Computer Technology

Refers to the study, design, development, application, implementation, support, or management of computer-based information systems.

Leadership Substitute

Alternatives to traditional leadership that can fulfill the role of guiding or influencing a group, such as technology or organizational structures.

Organizational Politics

Activities within an organization aimed at improving someone's status or position, often through means other than merit or performance.