Asked by
Isabella Keogh
on Nov 11, 2024
Verified
If a bank has $1 million in assets and $50,000 in net worth,its liabilities must equal:
A) $50,000.
B) $1,050,000.
C) $50 million.
D) $1,000,000.
E) $950,000.
Assets
Resources owned by an individual, company, or country, valued for their ability to generate revenue, reduce expenses, or provide value in the future.
Net Worth
The total value of an individual's or entity's assets minus liabilities; a measure of financial health.
Liabilities
Financial obligations or debts owed by a company or an individual.
- Learn the basic operations of banks, with an emphasis on the interplay between assets, liabilities, and owners' equity.
Verified Answer
TW
Learning Objectives
- Learn the basic operations of banks, with an emphasis on the interplay between assets, liabilities, and owners' equity.