If a bank's net worth is negative, then the bank is
A)liquid.
B)insolvent.
C)illiquid.
D)solvent.
E)none of the above

Name: If a bank's net worth is negative, then the bank is A)liquid. B)insolvent. C)illiquid. D)solvent. E)none of the above
Brand: Quizplus
Rating: 4.9 (29 reviews)

Question

Quizplus · Accepted Answer

A bank's net worth represents the value of its assets minus its liabilities. If the net worth is negative, then the bank owes more than it owns, which is a sign of insolvency.

If a Bank's Net Worth Is Negative, Then the Bank