The net worth of a bank
A)determines the level of bank loans possible.
B)is determined by subtracting liabilities from assets.
C)is determined by subtracting assets from liabilities.
D)can never be a negative value.

Question

Quizplus · Accepted Answer

The net worth of a bank is determined by subtracting liabilities from assets. It represents the amount of the bank's assets that would remain if all liabilities were paid off.

The Net Worth of a Bank