Bank Balance Sheet Assets Liabilities and Equity Reserves $20,000 Deposits $100,000 Loans 95,000 Debt 30,000 Securities 30,000 Equity 15,000 Using the table above and suppose a recession causes our bank's assets to fall by 5%, determine the leverage ratio. $137,750 9.67 17.77 9.18

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
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Bank Balance Sheet
Assets
Liabilities and Equity
Reserves $20,000 Deposits
$100,000
Loans
95.000 Debt
30,000
Securities 30,000 Equity
15,000
Using the table above and suppose a recession causes our bank's assets to fall by 5%, determine the leverage ratio.
$137,750
9.67
17.77
9.18
Transcribed Image Text:Bank Balance Sheet Assets Liabilities and Equity Reserves $20,000 Deposits $100,000 Loans 95.000 Debt 30,000 Securities 30,000 Equity 15,000 Using the table above and suppose a recession causes our bank's assets to fall by 5%, determine the leverage ratio. $137,750 9.67 17.77 9.18
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