Quizzol

QUESTION:

Which of the following statements about a bank's balance sheet is true?

a. An increase in a bank's capital increases its leverage ratio.

b. Assets minus liabilities equals owner's equity or capital.

c. The largest liability on the bank's balance sheet is its loans.

d. Because a bank is highly leveraged, a large change in the value of its assets has little impact on its capital.

e. None of the answer choices are correct.

ANSWER:

b. Assets minus liabilities equals owner's equity or capital.

Posted by Cleveland on September 9, 2024