When a bank is failing, it may sell off some of its assets to try and keep its equity (net worth) positive. However, this move can actually make its equity fall. This is because a bank selling assets makes the [Select] and the price of those asset ✓ [Select] go up go down stay the same

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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When a bank is failing, it may sell off some of its assets to try and keep its
equity (net worth) positive. However, this move can actually make its equity
fall.
This is because a bank selling assets makes the [Select]
and the price of those asset
✓ [Select]
go up
go down
stay the same
Transcribed Image Text:When a bank is failing, it may sell off some of its assets to try and keep its equity (net worth) positive. However, this move can actually make its equity fall. This is because a bank selling assets makes the [Select] and the price of those asset ✓ [Select] go up go down stay the same
When a bank is failing, it may sell off some of its assets to try and keep its
equity (net worth) positive. However, this move can actually make its equity
fall.
This is because a bank selling assets makes th
and the price of those assets [Select]
✓ [Select]
demand curve for those assets shift rightward
supply curve for those assets shift rightward
supply curve for those assets shift leftward
demand curve for those assets shift leftward
Transcribed Image Text:When a bank is failing, it may sell off some of its assets to try and keep its equity (net worth) positive. However, this move can actually make its equity fall. This is because a bank selling assets makes th and the price of those assets [Select] ✓ [Select] demand curve for those assets shift rightward supply curve for those assets shift rightward supply curve for those assets shift leftward demand curve for those assets shift leftward
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