If a Bank Has $100 Million in Assets and a Net

question 106

Multiple Choice

If a bank has $100 million in assets and a net worth of $10 million, its debt-to-equity ratio is:

• A) 10 to 1.
• B) 5 to 1.
• C) 9 to 1.
• D) 0.1 to 1.

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Definitions:

Clear-cutting

A logging practice that involves the complete removal of all trees from a specific area.

Even-aged Stand

A forestry term describing a group of trees of similar age within a specific area, typically resulting from reforestation or natural regeneration following a disturbance.

Seed-tree Cutting

A forestry technique where select seed-bearing trees are left standing to regenerate a forest.

Second-growth Forest

A forest that has regrown after a major disturbance, such as logging or fire, and is characterized by younger trees.