Answer the question on the basis of the following information for the Moolah Bank. $\begin{array} { l r }
\text { Reserves } & \$ 100 \
\text { Checkable Deposits } & 1,000 \
\text { Loans (to customers) } & 300 \
\text { Property } & 400 \
\text { Securities (owned) } & 300 \
\text { Stock Shares } & 100
\end{array}$ 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 profit is $200.

Question

Answer the question on the basis of the following information for the Moolah Bank. $\begin{array} { l r } 
\text { Reserves } & \$ 100 \
\text { Checkable Deposits } & 1,000 \
\text { Loans (to customers) } & 300 \
\text { Property } & 400 \
\text { Securities (owned) } & 300 \
\text { Stock Shares } & 100
\end{array}$ 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 profit is $200.

Quizplus · Accepted Answer

Net worth is calculated as total assets minus total liabilities. Here, assets are $1,100 (Reserves + Loans + Property + Securities) and liabilities are $1,000 (Checkable Deposits), so net worth is $100.

Answer the Question on the Basis of the Following Information