A Bank's Assets Are $400 Million and Its Liabilities Are

question 74

Multiple Choice

A bank's assets are $400 million and its liabilities are $300 million,which means that the bank's net worth (bank capital) is ____________________.If the bank's assets rise by 8% at the same time that its liabilities rise by 5%,the bank's new net worth will then be _______________.

• A) $700 million; $713 million
• B) $100 million; $117 million
• C) $100 million; $102 million
• D) $350 million; $360.5 million

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Definitions:

Social Discounting Bias

The tendency to devalue benefits or resources when they are to be shared with larger numbers of people.

Morality Bias

The tendency to make judgments or decisions based on moral considerations, often at the expense of other factors.

Bullying Incidents

Events or actions where an individual or group engages in aggressive or unwanted behavior aimed at harming or intimidating another.

Human Resources

The department within an organization that focuses on recruitment, management, and guidance for the people who work in it.