The value of banks' owners' equity is called bank:
A) deposits.
B) reserves.
C) capital.
D) liquidity.

Question

Quizplus · Accepted Answer

Capital refers to the value of a bank's owners' equity, which is the funds provided by the bank's owners or shareholders. It represents the residual interest in the assets of the bank after deducting its liabilities. Deposits refer to the funds held by the bank on behalf of its customers. Reserves refer to the portion of a bank's earnings that is set aside for future losses or expenses. Liquidity refers to a bank's ability to meet its financial obligations as they come due.

The Value of Banks' Owners' Equity Is Called Bank