A bank initially has $250 million in assets and $200 million in liabilities. The banks net worth (capital) is _____________ million. If the bank's assets decline by 10% and its liabilities do not change, its capital decreases by ____________
A) $50; 50%
B) $50; 100%
C) $50; 10%
D) $450; 10%
A
You might also like to view...
Why are isoquants negatively sloped?
A) Along a single isoquant, the firm can substitute the use of one input for another while holding the total level of output constant. B) Due to the effects of diseconomies of scale. C) Because the farther the isoquant is from the origin, the higher the level of output. D) Because price and quantity demanded are inversely related.
If all of the restaurants in a small town colluded and agreed to raise dinner prices, this would lead to a loss to society because
A. some dinners that could be served would not be served. B. collusion is illegal. C. the restaurants would become too crowded with new customers. D. the number of dinners served stays the same, but the buyers face higher prices.
Assume the graph shown represents the market for bottles of wine and was originally in equilibrium with D and S. Something changes and demand shifts to D2. Which of the following is true?
A. Equilibrium quantity increased by 20. B. Equilibrium price increased by $5. C. Equilibrium quantity increased by 30. D. Equilibrium price increased by $15.
Label the shutdown point.
