Timothy Gartner,an Employee in the Bank of Trust and Faith,has

question 61

Multiple Choice

Timothy Gartner,an employee in the Bank of Trust and Faith,has requested for a loan of $200,000 to buy a private cruise.The bank has an unimpaired capital and surplus of $38 million and $75 million in total time and savings deposits.Average revenue for the bank in the last three years is $18.5 million and a net interest income of $5.2 million.What is the maximum amount of loan the bank can grant to Timothy?

• A)$950,000
• B)$200,000
• C)$25,000
• D)$100,000
• E)The bank cannot make loans to its own employees