A financial institution's net worth is
A) the market value of net borrowing capacity.
B) the market value of what it has lent minus the market value of what it has borrowed.
C) its investments in other financial institutions and governments.
D) the market value of net borrowing less depreciation.
E) None of the above.

Question

Quizplus · Accepted Answer

Net worth is calculated as the market value of assets (what it has lent) minus the market value of liabilities (what it has borrowed).

A Financial Institution's Net Worth Is