A bank that has liabilities of $150 billion and a net worth of $20 billion must have:
1) excess reserves of $130 billion.
2)assets of $150 billion.
3) excess reserves of $150 billion.
4) assets of $170 billion.
1 Answer
-
4assets of 170 billion. Using the accounting equation Assets = Liabilites + Owners Equity, we can see that 150 +20 = 170.
Source(s): Accounting major, Finance minor
