A Bank Has $200 Million in Assets and $150 Million

question 68

Multiple Choice

A bank has $200 million in assets and $150 million in liabilities.The banks net worth is _____________ million and its leverage ratio is __________________.

• A)$350;0.56 to 1
• B)$175;1.14 to 1
• C)$50;4 to 1
• D)$25;8 to 1

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Definitions:

Currency

A system of money in general use in a particular country or economic context, serving as a medium of exchange.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another.

Japanese Goods

Products manufactured in Japan, ranging from electronics and automobiles to traditional crafts.

U.S. Economy

The economic system of the United States, characterized by a mixed economy with high levels of both government and private sector activity.