$\text { Gud Bank: }$ Bad Bank Buys the Bad Loans for $232

question 37

Multiple Choice

$\text { Gud Bank: }$

$\begin{array}{l}\begin{array}{lll}\text { Cash } & & \$ 200 \\ \text { Goodloans } & & \$ 1,000 \\ \text { Bad Loans } & & \$ 380 \\ \text { Total } & & \$ 1,580 \\ &\text { Bad Bank: } & \\ \text { Cash } & & \$ 240\\\text { Loans } & & 0 \\ \\\text { Total} & & \$ 240 \\\end{array}\begin{array}{lll}\text { Deposits} &\$ 1,000 \\ \text { Puychased funds} &\$ 300 \\ \text { Equity} &\$ 280 \\ & \$ 1,580 \\\\\text { Bonds} & \$ 120\\ \text { Preferred stock} &\$ 40 \\ \text { Common stock} &\$ 80 \\ & \$ 240 \end{array}\end{array}$

Bad Bank buys the bad loans for $232.The proceeds of the loan sale are used by Good Bank to pay off purchased funds.
If the proceeds of the loan sale are used to pay off purchased funds,what will be the balance of the purchased funds for Good Bank after the transaction?

• A)$1,200.
• B)$232.
• C)$132.
• D)$68.

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Definitions:

Popular Culture

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Bell Hooks's Feminism

A perspective on feminism articulated by Bell Hooks that emphasizes the interconnectivity of race, capitalism, and gender, advocating for a movement against all forms of oppression.

Marx's Conception

Karl Marx's theory on societal development which emphasizes the role of class struggle, the economic base of society, and the importance of material conditions.

Foucault's Conception

Refers to the philosophical and theoretical frameworks developed by Michel Foucault, particularly around the relationships between power, knowledge, and social institutions.