A Bank Has On-Balance-Sheet Assets with a Book Value of $940

question 42

Multiple Choice

A bank has on-balance-sheet assets with a book value of $940 million and a market value of $985 million and on-balance-sheet liabilities with a book value of $900 million and a market value of $930 million. The bank also has off-balance-sheet assets currently valued at $150 million and off-balance-sheet liabilities worth $160 million. Stockholders' net worth should be valued at ________ million.

• A)$30
• B)$40
• C)$45
• D)$50
• E)$55

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Definitions:

National Debt

The aggregate financial obligations incurred by a government of a country through borrowing.

Tax Revenue

The income gained by the government through taxation, which is then used to fund public services and governmental functions.

Budget

An estimate of income and expenditure for a set period of time.

Government Spending

Financial expenditures by the government to influence a nation's economy, including investments in public services and infrastructure.