The Net Worth of a Bank Is the Difference Between

question 34

Multiple Choice

The net worth of a bank is the difference between the

• A)value of retained earnings and the provision for loan losses.
• B)market value of assets and the market value of liabilities.
• C)book value of assets and book value of liabilities.
• D)rate-sensitive assets and rate-sensitive liabilities.
• E)None of these.

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Definitions:

Duty Of Obedience

An obligation to act in accordance with the directives or policies of an organization, typically refers to nonprofit boards or similar entities.

Personally Liable

The responsibility of an individual to fulfill debt or obligations from their own assets, rather than those of a corporation or entity.

Gross Returns

The total return on an investment before any deductions are made for costs or fees.

Written Agreement

A formalized record of a contract or arrangement between parties, documented in written form.