If the Total Liabilities of Bank a Are Less Than

question 202

Multiple Choice

If the total liabilities of Bank A are less than its total assets but its short-term liabilities are greater than its short-term assets,Bank A is:

• A) both liquid and solvent.
• B) both illiquid and insolvent.
• C) liquid,but insolvent.
• D) illiquid,but solvent.

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or business activity.

Marginal Costs

The additional cost incurred from producing one more unit of a good or service.

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Selling Price

The amount of money for which a product or service is sold to customers.