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Suppose that Musashi, a borrower of Patriot Bank, defaults on a $400,000 loan, and the collateral offered to get the loan is worthless. This will
Suppose that Musashi, a borrower of Patriot Bank, defaults on a $400,000 loan, and the collateral offered to get the loan is worthless. This will the loans outstanding portion of the bank's balance sheet, and it will the bank's capital to . In this situation, the bank is
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