A bank has the following balance sheet Cash $10 min Loans and securities $125 min Deposits $120 mln Equity $ 15 min Depositors request $20 mln in withdrawals. Assuming no new deposits or raising of capital and any selling of loans and securities will only get 75% of its stated value, what possibilities will occur? O Cash will go down by $10 min, deposits down by $20 mln. loans will go down by $13.33 min, and equity will be increased by $3.33 min O Cash will go down by $20 mln. deposits down by $20 mln, and equity down by $20 min O Cash will go down by $10 min, deposits down by $20 mln, loans will go down by $13.33 mln, and equity will be reduced by $3.33 min. O No answer text provided.
A bank has the following balance sheet Cash $10 min Loans and securities $125 min Deposits $120 mln Equity $ 15 min Depositors request $20 mln in withdrawals. Assuming no new deposits or raising of capital and any selling of loans and securities will only get 75% of its stated value, what possibilities will occur? O Cash will go down by $10 min, deposits down by $20 mln. loans will go down by $13.33 min, and equity will be increased by $3.33 min O Cash will go down by $20 mln. deposits down by $20 mln, and equity down by $20 min O Cash will go down by $10 min, deposits down by $20 mln, loans will go down by $13.33 mln, and equity will be reduced by $3.33 min. O No answer text provided.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![A bank has the following balance sheet
Cash
$10 min
Loans and securities $125 min
Deposits $120 mln
Equity $ 15 min
Depositors request $20 mln in withdrawals. Assuming no new deposits or raising of capital and any
selling of loans and securities will only get 75% of its stated value, what possibilities will occur?
O Cash will go down by $10 min, deposits down by $20 mln. loans will go down by $13.33 min, and equity will be
increased by $3.33 min
O Cash will go down by $20 mln. deposits down by $20 mln, and equity down by $20 min
O Cash will go down by $10 min, deposits down by $20 mln, loans will go down by $13.33 mln, and equity will be
reduced by $3.33 min.
O No answer text provided.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50c4a886-3e07-4312-95fc-3240a8ded880%2F034f36d4-1dd4-4f31-863f-4d9042f124b3%2Fym9ie2u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A bank has the following balance sheet
Cash
$10 min
Loans and securities $125 min
Deposits $120 mln
Equity $ 15 min
Depositors request $20 mln in withdrawals. Assuming no new deposits or raising of capital and any
selling of loans and securities will only get 75% of its stated value, what possibilities will occur?
O Cash will go down by $10 min, deposits down by $20 mln. loans will go down by $13.33 min, and equity will be
increased by $3.33 min
O Cash will go down by $20 mln. deposits down by $20 mln, and equity down by $20 min
O Cash will go down by $10 min, deposits down by $20 mln, loans will go down by $13.33 mln, and equity will be
reduced by $3.33 min.
O No answer text provided.
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