A bank that has liabilities of $150 billion and a net worth of $20 billion must have
A) excess reserves of $130 billion.
B) assets of $150 billion.
C) excess reserves of $150 billion.
D) assets of $170 billion.

Question

Quizplus · Accepted Answer

A bank's assets equal its liabilities plus its net worth, so the bank in this question has assets of $170 billion ($150 billion in liabilities + $20 billion in net worth).

A Bank That Has Liabilities of $150 Billion and a Net