The capital base is the value of a bank's
A)assets plus the value of its liabilities.
B)Fed funds minus repurchase agreements.
C)assets minus the value of its liabilities.
D)time deposits minus the value of its liabilities.

Question

Quizplus · Accepted Answer

The capital base is the amount by which a bank's assets exceed its liabilities. Therefore, it is calculated as assets minus liabilities. Choices A, B, and D do not accurately reflect the calculation of a bank's capital base.

The Capital Base Is the Value of a Bank's