Question VI (5 points)

Use the following table to answer the following question:

Table 3

Bank of Winnipeg (T-Account)

Assets: Liabilities:

Reserves: $7, 000 Deposits: $144, 000

Loans: $133, 000 Capital (equity):

Securities: $100, 000

Refer to table 3. By how much does the asset value must decrease for the Bank of Winnipeg to

become insolvent?