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.