A bank initially has $620 million in assets and $580 million in liabilities. The banks net worth (capital) is _____________ million. If the bank's assets decline by 5% and its liabilities do not change, its capital decreases by ____________
A) $40; 5%
B) $70; 141.4%
C) $40; 77.5%
D) $600; 5%
C
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In the twentieth century, Russian peasants noticed that during cholera epidemics there were lots of doctors around; in an attempt to eliminate cholera, they killed all the doctors. This is an example of
A. mistaking correlation with causation. B. the fallacy of opportunism. C. excessive abstraction. D. rationality. E. marginal analysis.
If an activity is worth pursuing at all, then the only information the decision maker needs to make a choice is
a. total benefits. b. marginal benefits and marginal costs. c. variable costs. d. fixed costs.
Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents
A) a decrease in quantity demanded. B) an increase in demand. C) an increase in quantity demanded. D) a decrease in demand.
Your college bookstore buys a used textbook for $25 and sells it to you for $125. What happens to GDP?
A) It increases by $25. B) It increases by $100. C) It increases by $125. D) It increases by $150.