An FI has assets of $800 million and liabilities of $740 million.

What is the balance sheet capital?
A)-$60 million.
B)$60 million.
C)$740 million.
D)$800 million.

Question

An FI has assets of $800 million and liabilities of $740 million.

What is the balance sheet capital?
A)-$60 million.
B)$60 million.
C)$740 million.
D)$800 million.

Quizplus · Accepted Answer

The balance sheet capital is calculated as:

Capital = Assets - Liabilities

Therefore,

Capital = $800 million - $740 million = $60 million

Option B is the correct answer, as it represents the calculated balance sheet capital of $60 million.

An FI Has Assets of $800 Million and Liabilities of $740