An FI Has Assets of $800 Million and Liabilities of $740

question 21

Multiple Choice

An FI has assets of $800 million and liabilities of $740 million.

If the FI had contingent assets of $40 million and contingent liabilities of $160 million,calculate the stockholder's true net worth (ignore the option mentioned in previous question) .

• A)-$60 million.
• B)$60 million.
• C)$70 million.
• D)-$160 million.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, measuring their benefit.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total benefit to society from the production and consumption of a good or service.

Tax

A financial charge or levy imposed by a government on individuals, corporations, or transactions to fund public expenditures.

Consumer Surplus

The gap between what consumers are prepared and able to spend on a product or service compared to what they end up paying in reality.