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Suppose that last year a hypothetical bank had loans of $620, deposits of $560, investments of $530, cash and reserves of $280, short-term debt of $310, and long-term debt of $300. If the value of the bank's investments decrease to $340 this year, the percentage change in equity from last year to this year is -35.85% and the bank is still solvent O -73.08% and the bank is still solvent O-35.85% and the bank is insolvent O -73.08% and the bank is insolvent

Suppose that last year a hypothetical bank had loans of $620, deposits of $560, investments of $530, cash and reserves of $280, short-term debt of $310, and long-term debt of $300. If the value of the bank's investments decrease to $340 this year, the percentage change in equity from last year to this year is -35.85% and the bank is still solvent O -73.08% and the bank is still solvent O-35.85% and the bank is insolvent O -73.08% and the bank is insolvent

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suppose that last year a hypothetical bank had loans of $620, deposits of $560, investments of $530, cash and reserves of $280, short-term debt of $310, and long-term debt of $300. If the value of the bank's investments decrease to $340 this year, the percentage change in equity from last year to this year is -35.85% and the bank is still solvent O -73.08% and the bank is still solvent O-35.85% and the bank is insolvent O -73.08% and the bank is insolvent
Transcribed Image Text:Suppose that last year a hypothetical bank had loans of $620, deposits of $560, investments of $530, cash and reserves of $280, short-term debt of $310, and long-term debt of $300. If the value of the bank's investments decrease to $340 this year, the percentage change in equity from last year to this year is -35.85% and the bank is still solvent O -73.08% and the bank is still solvent O-35.85% and the bank is insolvent O -73.08% and the bank is insolvent
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