If a Bank's Assets Are $500 Million and Its Liabilities

question 124

Multiple Choice

If a bank's assets are $500 million and its liabilities are $380 million,then its net worth (bank capital) is ____________________.If the bank's assets then rise by 6 percent at the same time that its liabilities rise by 5 percent,the percentage change in the bank's net worth will be approximately _______________ percent.

• A) $440 million; 10.2
• B) $120 million; 1.2
• C) $100 million; 11.2
• D) $120 million; 9.2

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Definitions:

Social Identity Theory

A psychological theory proposing that individuals derive part of their self-concept from their perceived membership in a relevant social group.

Ingroups

Social groups to which an individual feels a sense of membership, belonging, and identity.

Outgroups

Groups of people that an individual does not identify as belonging to, often seen as different or apart from one's own group.

Self-knowledge

An individual's understanding of their own personality, feelings, motives, desires, and other aspects of the self.