If the assets of a bank are greater than the liabilities, they will be recorded as:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. net worth.
If the assets of a bank are greater than its liabilities, they will be recorded as net worth. Net worth represents the bank's equity or ownership value after subtracting total liabilities from total assets. It indicates the financial health of the bank and serves as a cushion against potential losses. A positive net worth implies that the bank has sufficient assets to cover its obligations, reflecting stability and a solid foundation for operations, which is crucial for maintaining trust among depositors and investors.