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X bank is a large bank whose only assets and liabilities are summarized in their balance sheet: Assets Reserves and Cash - 20 Billion Dollars Long Term Investments- 330 Billion Dollars Total Assets ??? Liabilities Demand Deposits-200 Billion Dollars Borrowing from Other Banks- 50 Billion Dollars Shareholders' Equity??? a) calculate total assets and shareholders' equity. ( b)Assume that due to an economic downturn, the value of bank's long-term investments declines by 10%. Show the resulting situation on bank's balance sheet. How would you describe the resulting situation for the bank? (¹

X bank is a large bank whose only assets and liabilities are summarized in their balance sheet: Assets Reserves and Cash - 20 Billion Dollars Long Term Investments- 330 Billion Dollars Total Assets ??? Liabilities Demand Deposits-200 Billion Dollars Borrowing from Other Banks- 50 Billion Dollars Shareholders' Equity??? a) calculate total assets and shareholders' equity. ( b)Assume that due to an economic downturn, the value of bank's long-term investments declines by 10%. Show the resulting situation on bank's balance sheet. How would you describe the resulting situation for the bank? (¹

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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X bank is a large bank whose only assets and liabilities are summarized in their balance sheet: Assets Reserves and Cash - 20 Billion Dollars Long Term Investments- 330 Billion Dollars Total Assets ??? Liabilities Demand Deposits-200 Billion Dollars Borrowing from Other Banks- 50 Billion Dollars Shareholders' Equity??? a) calculate total assets and shareholders' equity. ( b)Assume that due to an economic downturn, the value of bank's long-term investments declines by 10%. Show the resulting situation on bank's balance sheet. How would you describe the resulting situation for the bank? (¹
Transcribed Image Text:X bank is a large bank whose only assets and liabilities are summarized in their balance sheet: Assets Reserves and Cash - 20 Billion Dollars Long Term Investments- 330 Billion Dollars Total Assets ??? Liabilities Demand Deposits-200 Billion Dollars Borrowing from Other Banks- 50 Billion Dollars Shareholders' Equity??? a) calculate total assets and shareholders' equity. ( b)Assume that due to an economic downturn, the value of bank's long-term investments declines by 10%. Show the resulting situation on bank's balance sheet. How would you describe the resulting situation for the bank? (¹
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