Under Market Value Accounting Methods, FIs

question 113

Multiple Choice

Under market value accounting methods, FIs

• A)must write down the value of their assets to fully reflect market values.
• B)have a great deal of discretion in timing the write downs of problem loans.
• C)must conform to regulatory write-down schedules.
• D)have an incentive to fully reflect problem assets as they become known.
• E)are required to invest in expensive computerized bookkeeping systems.

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Definitions:

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The assumption that objects have only one label.

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Appearance-Reality Distinction

The cognitive ability to distinguish between how objects appear and their true nature, which develops in early childhood.