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-If Problem Loans Reduce the Market Value of the Loan

question 28

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 Securities (at par)  $250 Deposits $975 Loans (at par)  $760 Capital $35\begin{array} { l l l l } \text { Securities (at par) } & \$ 250 & \text { Deposits } & \$ 975 \\\text { Loans (at par) } & \$ 760 & \text { Capital } & \$ 35\end{array}
-If problem loans reduce the market value of the loan portfolio by 25 percent, what is the value of regulatory defined (book value) capital?


Definitions:

Capitalism

An economic system characterized by private ownership of the means of production, free markets, and the pursuit of profit.

Population Change

Alterations in the size, composition, distribution, or density of human populations over time.

Variables

Elements, characteristics, or attributes that can vary or change, often used in research to measure and analyze differences.

Demographers

Are socialscientific analysts of human population.

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