The Following Market Value Balance Sheet of a Failed Bank

question 6

Multiple Choice

The following market value balance sheet of a failed bank ($ millions) What is the market value of capital?

• A)$200 million.
• B)-$200 million.
• C)$0.
• D)$400 million.
• E)$600 million.

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Definitions:

Diminishing Marginal Utility

A principle in economics that posits an individual gains less satisfaction from consuming each additional unit of the same product or service.

Marginal Utility

The extra pleasure or advantage gained from using another unit of a product or service.

Consumption

The act of using goods and services by households or individuals for personal needs or to derive utility.

Marginal Utility

The added satisfaction or utility that a consumer receives from having one more unit of a good or service.