If a bank's net worth is negative, then the bank definitely is
A) insolvent.
B) liquid.
C) solvent.
D) illiquid.

Name: If a bank's net worth is negative, then the bank definitely is A) insolvent. B) liquid. C) solvent. D) illiquid.
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Question

Quizplus · Accepted Answer

A bank's net worth represents the difference between its assets and liabilities. If the net worth is negative, it means that the bank owes more than it owns, making it insolvent.

If a Bank's Net Worth Is Negative, Then the Bank