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 its assets and pays all its liabilities, the remaining amount is its net worth or shareholder's equity. This represents the residual value of the bank's assets after paying off the obligations. It is the value of the bank's ownership interest or the value of the common stockholders' equity in the bank. Net worth is an important indicator of a bank's financial health and stability.

If a Bank Sells Off All of Its Assets and Pays