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Assets: $200 Reserves; $5000 Short term Bonds; $6000 Long Term Loans Liabilities: $7000 Checkable Deposits; $3000 Fixed Rate Borrowings; $1200 Capital What is the maximum

Assets: $200 Reserves; $5000 Short term Bonds; $6000 Long Term Loans

Liabilities: $7000 Checkable Deposits; $3000 Fixed Rate Borrowings; $1200 Capital

What is the maximum amount of write-offs the bank could sustain without becoming insolvent? How do you know? If a bank becomes insolvent what are the two methods the FDIC can use to resolve the problem?

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