If the value of a bank's liabilities exceeds the value of its assets, the bank is:
A) undervalued.
B) bankrupt.
C) viable.
D) marginal.

Name: If the value of a bank's liabilities exceeds the value of its assets, the bank is: A) undervalued. B) bankrupt. C) viable. D) marginal.
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Quizplus · Accepted Answer

When a bank's liabilities exceed its assets, it means the bank cannot cover its debts with its available assets, which is a condition that can lead to bankruptcy.

If the Value of a Bank's Liabilities Exceeds the Value