Which of the following defines bank capital?
A) Total liabilities minus deposits.
B) Total liabilities plus bonds.
C) Total assets plus total liabilities.
D) Total assets minus total liabilities.
E) Total assets minus bonds.

Question

Quizplus · Accepted Answer

Bank capital is defined as the amount of a bank's assets that is financed by equity rather than debt. It can be calculated as total assets minus total liabilities. This represents the bank's net worth or shareholders' equity.

Which of the Following Defines Bank Capital