Question

If the market value of what it has lent is less than the market value of what it has borrowed, a financial institution's net worth is ________ and it is ________.
A) negative; illiquid but not necessarily insolvent
B) negative; insolvent but not necessarily illiquid
C) positive; illiquid and insolvent
D) negative; illiquid and insolvent
E) positive; insolvent but not necessarily illiquid

Answer

This answer is hidden. It contains 1 characters.