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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?


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Theories of Truth

Various philosophical theories that aim to define what truth is, exploring how truth is determined and understood.

Relativism

The doctrine that knowledge, truth, and morality exist in relation to culture, society, or historical context, and are not absolute.

Empirical

Based on, concerned with, or verifiable by observation or experience rather than theory or pure logic.

Necessary

A condition or requirement that is indispensable or essential for something to occur or be the case.

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