A bank whose net worth is negative is said to be and its as

A bank whose net worth is negative is said to be ____________ and its assets ___________ its liabilities

insolvent; exceed

insolvent; are less than

illiquid; are less than

illiquid; exceed

Solution

ans. insolvent;are less than.

A negative net worth means a bank\'s excess liability over their assets so they will be unable to satisfy the creditors and discharge their liabilities. This situation may lead to bankruptcy. A bank is insolvent whe their liabilities are greater than their assets. A bank is liquid when the current assets is able to meet the current liabilities of the bank.