If a bank sells off all of its assets and pays all of its liabilities, the amount remaining would be its:

Question

Quizplus · Accepted Answer

When a bank sells off all of its assets and pays all of its liabilities, the amount remaining would be its net worth or equity. This represents the amount of money that would be left over for shareholders if the bank were to dissolve and sell all its assets. It's important to note that net worth is not the same as net profit or reserves, which are both components of a bank's overall financial position but do not reflect its total equity.

If a Bank Sells Off All of Its Assets and Pays