The Following Market Value Balance Sheet of a Failed Bank

question 26

Multiple Choice

The following market value balance sheet of a failed bank ($ millions) If the insured depositor transfer resolution method is utilized, what is the cost to insured depositors of bank failure resolution?

• A)$0.
• B)-$200 million.
• C)$67 million.
• D)$133 million.
• E)$200 million.

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Definitions:

Benevolence

The quality of being well-meaning and kindly; a desire to help others.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision, representing the benefits one could have received by taking the alternative action.

Manufacturing

The process of converting raw materials or components into finished goods through the use of tools, human labor, machinery, and chemical processing.

Export

The sale and shipping of goods or services from one country to another.