Bank capital is the difference between a bank's assets and its:
ALegislatures
BLiabilities
CLocalities
DLaboratories
Answer & Solution
Correct answer: B. Liabilities
1. Capital requirements are one category of bank regulation.
2. Capital is measured from the two sides of the balance sheet.
3. Bank capital is the difference between a bank's assets and its liabilities.
4. So the answer is liabilities.
_Source: OpenStax Principles of Macroeconomics 3e (CC BY 4.0), Ch 15 'Monetary Policy and Bank Regulation', sections 15.1-15.5_
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