A bank's net worth equals:
ALoans minus reserves
BAssets minus liabilities
CDeposits plus loans
DReserves plus cash
Answer & Solution
Correct answer: B. Assets minus liabilities
1. Both sides of a balance sheet must balance.
2. Net worth is assets minus liabilities.
3. It is recorded on the liabilities side.
_Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._
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