Check to see if multiple choice are correct

Part I. Concepts (20 points; 2 points for each question) Please circle the correct choice. A financial institution is insolvent when its drops to zero. et income Equity capital A potential borrower's Gross Debt Service Ratio must be mortgage loan will be approved. before hisher residential Z 5-3 A) smaller than about 30% Bigger than about 50% For a well-managed bank, the ratio of nonperforming loans to total loans is usually about 2% to 4% 10% to 20% B. Consider the coefficients of Altman's Z-score for analyzing large C&I loans, Can you tell by the values of the coefficients which financial ratios appear more important in assessing the creditworthiness of a loan applicant? Yes B. No A bank's liquidity risk is only related to the liability side (such as net deposit drain); it is not related to the asset side at all. The statement is: A. True False