$$\begin{array} { | l | r | }
\hline \text { Reserves } & \$ 100 \
\hline \text { Checkable Deposits } & 1,000 \
\hline \text { Loans (to customers) } & 300 \
\hline \text { Property } & 400 \
\hline \text { Securities (owned) } & 300 \
\hline \text { Stock Shares } & 100 \
\hline
\end{array}$$ Refer to the accompanying table of information for the Moolah Bank. Assume that the listed amounts constitute this bank's complete set of accounts. Moolah's
A) assets are $1,000.
B) liabilities are $300.
C) net worth is $100.
D) annual pro?t is $200.

Question

$$\begin{array} { | l | r | } 
\hline \text { Reserves } & \$ 100 \
\hline \text { Checkable Deposits } & 1,000 \
\hline \text { Loans (to customers) } & 300 \
\hline \text { Property } & 400 \
\hline \text { Securities (owned) } & 300 \
\hline \text { Stock Shares } & 100 \
\hline
\end{array}$$ Refer to the accompanying table of information for the Moolah Bank. Assume that the listed amounts constitute this bank's complete set of accounts. Moolah's
A) assets are $1,000.
B) liabilities are $300.
C) net worth is $100.
D) annual pro?t is $200.

Quizplus · Accepted Answer

- Assets are the sum of all items a bank owns, which is calculated as: 
    Reserves + Checkable Deposits + Loans (to customers) + Property + Securities (owned) + Stock Shares
    = 100 + 1,000 + 300 + 400 + 300 + 100
    = $2,200 
- Liabilities are the sum of all items a bank owes to others, which is calculated as: 
    Checkable Deposits
    = $1,000 
- Net worth is the difference between assets and liabilities, which is calculated as: 
    Assets - Liabilities
    = $2,200 - $1,000
    = $1,200
    However, since the question only asks for net worth and not shareholders' equity, we only consider the stock shares as part of net worth. So, 
    Net worth = $100 
- There is no information given about the bank's annual profit, so we cannot calculate it.

Refer to the Accompanying Table of Information for the Moolah