Which of the Following Statements Is True

question 65

Multiple Choice

Which of the following statements is true?

• A)The financing requirement is the financing gap plus an FI's liquid assets.
• B)The financing requirement is the financing gap minus an FI's liquid assets.
• C)The financing requirement is the financing gap multiplied by an FI's liquid assets.
• D)The financing requirement is the financing gap divided by an FI's liquid assets

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Definitions:

Capital Balance

The amount of owner's equity or shareholder's equity in a business, representing the owner's investment.

Net Assets

The total assets minus total liabilities of an entity, representing the owners' equity.

Capital Balances

The amounts recorded in the equity section of a company's balance sheet for the owners' or shareholders' investments.

Partners' Equity

The total value of capital contributed by partners and the accumulated profits of a partnership firm, minus any withdrawals.