A bank fails when the value of its ________ falls below the value of ________,causing the bank to become insolvent.

Question

Quizplus · Accepted Answer

A bank fails when the value of its assets falls below the value of its liabilities, which means the bank does not have enough money to pay off its debts. The other options are incorrect because reserves and securities are types of assets, and loans and secondary reserves are not directly tied to insolvency.

A Bank Fails When the Value of Its ________ Falls