Assume You Are Presented with the Following Data Regarding an FI's

question 58

Multiple Choice

Assume you are presented with the following data regarding an FI's asset and liability values: $$\begin{array} { | l | l | } \hline \text { Bookvalue of assets } & \$ 50000 \\\hline \text { Bookvalue of liabilities } & \$ 42000 \\\hline \text { Market value of assets } & \$ 48000 \\\hline \text { Market value of liabilities } & \$ 45000 \\\hline\end{array}$$ Which of the following statements is true?

• A)The net worth of the FI is $2000.
• B)The net worth of the FI is -$3000.
• C)The net worth of the FI is $3000.
• D)The net worth of the FI is -$1000.

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Definitions:

Formal Business Plan

A detailed document that outlines the goals, strategies, financial forecasts, and market analysis of a business.

Financial Projections

Estimates of future financial performance of a business, including projected income, revenue, and expenses.

Team

A group of individuals working together towards a common goal, often characterized by collaboration, communication, and collective effort.

Exaggerated Hockey Stick

A term used to describe a revenue growth projection for a business that unrealistically shows a sharp increase in revenue after a certain point, resembling a hockey stick.