Which of the following statements best describes a bank's capital base?
A)the value of liabilities minus the value of assets
B)the value of assets minus the value of liabilities
C)the value of assets minus the value of net worth
D)the value of assets plus the value of net worth

Question

Quizplus · Accepted Answer

A bank's capital base is essentially the difference between its assets and its liabilities. This is a fundamental measure of a bank's financial strength and stability, reflecting the net worth or equity available to absorb losses.

Which of the Following Statements Best Describes a Bank's Capital