The Net Worth of a Bank Is

question 160

Multiple Choice

The net worth of a bank is

• A)equal to the value of assets.
• B)equal to the value of deposits.
• C)equal to the value of liabilities.
• D)the value of assets less liabilities.
• E)the value of loans and securities.

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Definitions:

Banks

Financial institutions licensed to receive deposits and make loans, and offer various other financial services, such as wealth management and currency exchange.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, taxes, and costs incurred in producing those revenues.

Financial Markets

Marketplaces where individuals and entities can trade financial securities, commodities, and other fungible assets at prices determined by supply and demand.

Saver

A saver is an individual or entity that allocates a portion of income or resources for future use rather than immediate consumption, often with the aim of earning interest or investment income.