A Bank Is _______ When Its _______ Become(s)_______

question 111

Multiple Choice

A bank is _______ when its _______ become(s) _______ .

• A)solvent; net worth; negative
• B)insolvent; reserves; negative
• C)solvent; excess reserves; positive
• D)insolvent; net worth; negative

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Definitions:

Inventories

The raw materials, work-in-process products, and finished goods considered part of a business's assets that are ready or will be ready for sale.

Taxes Payable

Liabilities owed to various governmental entities within the current fiscal period.

Bonds Outstanding

The total amount of bonds that are issued by a corporation or government entity and are currently in the hands of investors.

Leverage Ratio

A financial measurement that compares the amount of a company's debt to its assets, equity, or earnings.