Question
Suppose the depositors want to withdrawal $40,000,000 from Bank B. If Bank B liquidates its' nonliquid assets, it will receive $0.78 on the dollar. What
Suppose the depositors want to withdrawal $40,000,000 from Bank B. If Bank B liquidates its' nonliquid assets, it will receive $0.78 on the dollar.
What is the capital loss that results from this liquidity crisis?
Bank B Assets Liabilities Cash 32,400,000 Deposits 145,250,000 Nonliquid 129,600,000 Capital 16,750,000 Assets Assets 162,000,000 Liabilities 162,000,000
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
