A Bank's Capital Is

question 71

Multiple Choice

A bank's capital is:

• A)​the value of all its assets, including loans.
• B)​the value of all its assets, excluding loans.
• C)​the value of its physical plant, including buildings, computers, and automatic teller machines.
• D)​the difference between its assets and liabilities.

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Definitions:

Deposit Tickets

Paper forms used to credit deposited funds to a bank account.

Days' Sales Uncollected

A financial metric that measures the average number of days it takes for a company to collect payment after a sale has been made.

Liquidity

The ability of an asset to be quickly converted into cash without significantly affecting its market price.

Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.