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Question 32 3 pts Bank B's balance sheet is given by : Assets Reserves: 100 Loans : 80 Liabilities Debt: 165 Equity : ? True

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Question 32 3 pts Bank B's balance sheet is given by : Assets Reserves: 100 Loans : 80 Liabilities Debt: 165 Equity : ? True or false : Bank B is more leveraged than bank A. O True O False o Question 33 3 pts Suppose that following a negative shock to the economy, 30% of bank loans go into default. What is bank B's new equity value? What does this imply for the bank? Edit View Insert Format Tools Table 12pt Paragraph I o

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