For the Following Questions Use the Information in the Followingtable

question 3

Multiple Choice

For the following questions use the information in the followingtable.
-Given the information in Table 10.2,if the value of this bank's investments decrease by $1,000,what is the approximate leverage ratio of this bank?

• A)10.60
• B)3.87
• C)8.60
• D)2.78
• E)not enough information

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Definitions:

Consumer Surplus

The distinction in the total financial outlay consumers are prepared to make for a good or service and the outlay made.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded, typically sloping downward from left to right.

Willingness To Pay

The maximum amount an individual is prepared to spend to procure a good or service or to avoid something undesirable.

Consumer Surplus

The split between the total amount consumers are prepared to spend on a good or service and the actual amount they spend.