Consider two banks: Bank A and Bank B. Suppose the value of liabilities of both the banks is equal. However, Bank A is solvent but Bank B is insolvent. This would imply that:
A) the value of Bank B's assets exceeds the value of Bank B's liabilities.
B) the value of Bank A's liabilities exceeds the value of Bank A's assets.
C) the value of Bank B's assets exceeds the value of Bank A's assets.
D) the value of Bank A's assets exceeds the value of Bank B's assets.
D
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Based on the graph above, a cause of movement from point 1 to point 2 might be ________
A) a positive price shock B) government policy that lowers unemployment C) an increase in potential output D) an increase in expected inflation E) none of the above
A cartel is an organization of firms in which there is a dominant firm which dictates price and output decisions to other member firms
a. True b. False Indicate whether the statement is true or false