The Primary Liabilities of Depository Institutions Are

question 112

Multiple Choice

The primary liabilities of depository institutions are

• A)premiums from policies.
• B)shares.
• C)deposits.
• D)bonds.

Understand the concept of public goods and how they differ from private goods.

Grasp why public goods lead to market failure when provided through the private market.

Identify examples of public goods and common resources.

Understand the role of government in providing public goods and addressing externality issues.

---

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Return On Equity

This is a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how much profit a company generates with the money shareholders have invested.

Retained Earnings

Retained earnings represent the cumulative amount of net income a company retains for reinvestment in its operations rather than paying it out as dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership interest.