Which of the Following Statements Is True

question 33

Multiple Choice

Which of the following statements is true?

• A) A bank's assets are its sources of funds.
• B) A bank's liabilities are its uses of funds.
• C) A bank's balance sheet shows that total assets equal total liabilities plus equity capital.
• D) All of the above are true.

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Definitions:

Put Option

A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Exercise Price

The predetermined price at which the holder of an option can buy (in case of a call option) or sell (in case of a put option) the underlying asset.

Stock Price

The cost of purchasing a share of a company, reflecting the market's valuation of the company's future earnings potential.

Standardized Options

Options that have been standardized by an options exchange, detailing the specific terms such as expiration date and strike price.