If stockholders’ equity is $50,000 and liabilities are $78,000, then assets must equal:
A. $28,000
B. $50,000
C. $78,000
D. $128,000
Answer: D. $128,000
Explanation: Assets = Liabilities ($78,000) + Stockholders' Equity ($50,000) = $128,000.
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Which of the following statements is FALSE?
A) The interest rates that banks offer on investments or charge on loans depends on the horizon of the investment or loan. B) The Federal Reserve determines very short-term interest rates through its influence on the federal funds rate. C) The interest rates that are quoted by banks and other financial institutions are nominal interest rates. D) Fundamentally, interest rates are determined by the Federal Reserve.