Suppose a Bank Has Total Assets of $300 Million and a Net

question 230

Multiple Choice

Suppose a bank has total assets of $300 million and a net worth of $15 million.Its demand deposit liabilities must be equal to

• A) $20 million
• B) $315 million
• C) $0.05 million
• D) $285 million
• E) $585 million.

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Definitions:

Sale

A contract in which ownership of goods is transferred by the seller to the buyer for a price.

Title

Legal ownership of property, especially real estate or automobiles.

Oral Contracts

Agreements that are made verbally and are legally binding, though harder to prove than written contracts.

Written Confirmation

A document that records and verifies specific details of an agreement or transaction between two or more parties.