Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show answer clearly In July 2010, Congress was considering having the federal government set up a lending fund for small banks. The U.S. Treasury
Please show answer clearly
In July 2010, Congress was considering having the federal government set up a "lending fund" for small banks. The U.S. Treasury would lend the funds to banks. The more of the funds the banks loaned to small businesses, the lower the interest rate the Treasury would charge the banks on the loans. Congressman Walt Minnick of Idaho was asked to comment on whether the bill would be helpful to small businesses. Here is part of his response: "The bank that's struggling to write down their commercial real estate assets is having to take a hit to capital, and this provides replacement capital on very, very favorable terms. So it deals with the left side of the balance sheet..." a. Would a loan from the Treasury be counted as part of a bank's capital? A. No. A bank's capital excludes loans from government entities. B. Yes, a loan from the treasury would be counted as bank capital. C. No, a loan from the treasury would not be counted as bank capital. D. Yes, any kind of loan is counted as bank capitalStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started