If the total liabilities of Bank A are less than its total assets but its short-term liabilities are greater than its short-term assets,Bank A is:
A) both liquid and solvent.
B) both illiquid and insolvent.
C) liquid,but insolvent.
D) illiquid,but solvent.

Question

Quizplus · Accepted Answer

Bank A is solvent because its total assets exceed its total liabilities, indicating overall financial health. However, it is illiquid because its short-term liabilities exceed its short-term assets, suggesting potential difficulty in meeting short-term obligations.

If the Total Liabilities of Bank a Are Less Than