The net worth of a bank is
A)equal to the value of assets.
B)equal to the value of deposits.
C)equal to the value of liabilities.
D)the value of assets less liabilities.
E)the value of loans and securities.

Question

Quizplus · Accepted Answer

The net worth of a bank is defined as its assets minus its liabilities (also known as equity). This is the amount of money that would be left over if all of the bank's assets were sold and all of its liabilities paid off. It represents the bank's actual value or "worth" and serves as a measure of its financial health. Therefore, the correct option is D - the value of assets less liabilities.

The Net Worth of a Bank Is