Assume That a Bank's Market Value of Assets Is $200

question 5

Multiple Choice

Assume that a bank's market value of assets is $200, the market value of its contingent assets is $50, the market value of its liabilities is $180 and the market value of its contingent liabilities is $60.What is the value of this bank's net worth?

• A)$200 + $180 - $50 - $60 = $270
• B)$180 - $200 + $50 + $60 = $90
• C)$200 - $180 + $50 - $60 = $10
• D)$200 - $180 - $50 + $60 = $30

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Definitions:

Quantity Demanded

The amount of a product consumers are willing to buy at a specific price, differentiating from the total market demand.

Relatively Inelastic

Relatively inelastic describes a scenario where the demand or supply for a product changes only slightly in response to changes in price.

Unitary Elasticity

A situation in which the percentage change in quantity demanded or supplied is equal to the percentage change in price.

Percentage Increase

A measurement that calculates the degree to which a value has risen compared to its previous value, expressed as a percentage.