If a bank's assets are $500 million and its liabilities are $380 million, then its net worth (bank capital) is ____________________. If the bank's assets then rise by 6 percent at the same time that its liabilities rise by 5 percent, the percentage change in the bank's net worth will be approximately _______________ percent
A) $440 million; 10.2
B) $120 million; 1.2
C) $100 million; 11.2
D) $120 million; 9.2
D
You might also like to view...
Which of the following is not held constant along a firm's demand curve for labor?
A) the quantity of other inputs used by the firm B) the price of the product produced by the firm C) the wage rate D) changes in technology
Which of the following helps low-income countries grow rapidly relative to high-income countries?
a. Low-income countries are in a better position to save a larger share of their income. b. Low-income countries can employ technologies and practices that have been successful in high-income countries. c. Low-income countries generally have legal systems that protect property rights and enforce contracts in a more evenhanded manner. d. Low-income countries generally have more favorable weather conditions.
The expenditure approach to GDP accounting includes
a. wages and salaries b. net exports c. net interest d. corporate profit e. proprietors' income
One result of asymmetric information about people's ability to repay a loan is that:
A. loans will only be made to people who don't pay them back. B. a bank could make many loans to people who don't pay them back. C. lenders are better off than with perfect information. D. banks will not make loans.