Examlex
A bank's assets consist of $1,000,000 in total reserves, $2,100,000 in loans, and a building worth $1,200,000. Its liabilities and capital consist of $3,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 10 percent, then the bank's excess reserves is _____ and it can loan out a maximum of _____.
Net Income
The amount of money a company earns after subtracting all expenses, taxes, and losses, indicating the company's profitability over a time period.
Net Capital
The amount of capital that a company has after subtracting its liabilities from its assets, often used in financial analysis to assess a company's financial health.
Revised Model Business Corporation Act
A model law proposed to standardize and regulate corporate business activities in the United States.
Negative Book Value
A situation where a company's liabilities exceed its assets, resulting in a negative equity value on the balance sheet.
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