A Bank's Assets Are

question 48

Multiple Choice

A bank's assets are

• A)things owned by or owed to the bank.
• B)things the bank owes to someone else.
• C)a measure of the bank's net worth.
• D)always greater than the bank's liabilities.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor expenses.

Variable Cost

Expenses incurred by a business that vary directly with the level of production or sales volume, such as cost of goods sold.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to assess the profitability of investments.

Discount Rate

An interest rate used by central banks to lend money to commercial banks, intended to influence the broader economy.