A bank's net worth is synonymous with its:

Question

Quizplus · Accepted Answer

Net worth is the same as capital, which represents the bank's value after taking into account its assets and liabilities. It is the amount of money the bank would have left if it were to liquidate all its assets and pay off its liabilities. Therefore, choice C is correct. Choices A and B are incorrect because they equate net worth with total assets or assets plus liabilities, without taking into account the bank's capital. Choice D is incorrect because required reserves are only a part of a bank's liabilities and do not represent its total net worth.

A Bank's Net Worth Is Synonymous with Its