A Bank's Net Worth Is

question 65

Multiple Choice

A bank's net worth is:

• A)equal to assets plus liabilities.
• B)sometimes called the owners' equity.
• C)equal to assets minus reserves.
• D)the same thing as net profits.
• E)the amount of interest charged by the bank for short-term loans.

---

Definitions:

Analogical

Pertaining to analogy; the process of finding correspondences or logical relations between seemingly dissimilar things.

Directed Thinking

Thought that is focused, goal-oriented, and follows logical steps towards a specific conclusion.

Mental Set

The perspective that a person takes and the assumptions he makes in approaching a problem.

Analogical Representation

A mental representation of one thing that is similar in some way to another; used in problem-solving and reasoning.