Net worth is equal to a bank's:
A)investments minus deposits.
B)cash plus reserves.
C)deposits plus loans.
D)loans minus capital.
E)total assets minus its total liabilities.

Question

Quizplus · Accepted Answer

Net worth is the difference between the total assets and total liabilities of a bank. It represents the value of the bank's equity, or the amount of assets that belong to the shareholders after all liabilities have been accounted for. Therefore, the correct answer is E - total assets minus its total liabilities.

Net Worth Is Equal to a Bank's