A bank has (in millions): $300 reserves, $900 loans, $500 securities, $1000 deposits, and $100 debt. How much is the bank's capital?

Question

Quizplus · Accepted Answer

The bank's capital can be found by subtracting the bank's total liabilities from its total assets.

Total assets = $300 (reserves) + $900 (loans) + $500 (securities) = $1700 million

Total liabilities = $1000 (deposits) + $100 (debt) = $1100 million

Capital = $1700 million - $1100 million = $600 million

Therefore, the answer is choice B: $600 million.

A Bank Has (In Millions): $300 Reserves, $900 Loans, $500