Which of the following equations correctly relates assets, liabilities, and net worth? Assets + liabilities =net...

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Question

Which of the following equations correctly relates assets, liabilities, and net worth? Assets + liabilities =net...

Which of the following equations correctly relates assets, liabilities, and net worth?

		Assets + liabilities =net worth
		Assets + net worth = liabilities
		Assets = liabilities + net worth
		Liabilities =assets +net worth

Which of the following agencies acts as lender of last resort for the banking system?

		The Federal Reserve System
		The Treasury
		The Federal Deposit Insurance Corporation
		Fannie Mae

business economics

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Answer 1

Answer #1

1.According to formula of net worth

Total assets - Total liabilities= Net worth

This is also known as share holder equity and can be used to calculate own worth also.

2.the agency responsible for act as lender of last resort is the treaury department in banking system. Like in the US treasury department deals with all type of lending.Therefore answer is treasury department.

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Answer 2

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Which of the following equations correctly relates assets, liabilities, and net worth? Assets + liabilities =net...

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