A Bank's Net Worth Is

question 65

Multiple Choice

A bank's net worth is:

• A)equal to assets plus liabilities.
• B)sometimes called the owners' equity.
• C)equal to assets minus reserves.
• D)the same thing as net profits.
• E)the amount of interest charged by the bank for short-term loans.

---

Definitions:

Capital Base

The amount of capital that a company or financial institution has available for conducting its operations, typically consisting of equity and debt.

Quality Of Earnings

An assessment of how accurately a company's reported income reflects its true earning capacity, and if it's indicative of its future financial performance.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction.

Net Cash

The amount of cash remaining after all operating expenses, investments, and financial obligations have been accounted for.