Bank ________ is/are listed on the liability side of the bank's balance sheet. Question 12 options: A) capital B) securities C) cash items D) reserves

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18-03-2020
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Bank ________ is/are listed on the liability side of the bank's balance sheet. Question 12 options: A) capital B) securities C) cash items D) reserves

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kayodealasi kayodealasi · Answer 1 · 2020-03-23T02:24:44+01:00

Answer:A) capital

Explanation:Bank capital is the difference between a bank's assets and its liabilities, and it represents the net worth of the bank or its equity value to investors. The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans).

Bank capital represents the value invested in the bank by its owners and/or investors. It is calculated as the sum of the bank's assets minus the sum of the bank's liabilities, or being equal to the bank's equity.