A bank has (in millions): $200 reserves,$800 loans,$400 securities,$1000 deposits,and $100 debt.How much is the bank's capital?
A) $300 million
B) $600 million
C) $1000 million
D) $1400 million

Question

Quizplus · Accepted Answer

The bank's capital is calculated as total assets minus total liabilities. Assets are reserves ($200M), loans ($800M), and securities ($400M), totaling $1400M. Liabilities are deposits ($1000M) and debt ($100M), totaling $1100M. Capital is $1400M - $1100M = $300M.

A Bank Has (In Millions): $200 Reserves,$800 Loans,$400 Securities,$1000 Deposits,and