Suppose the economy goes into a recession, and many borrowers could not pay back the money that they borrowed from Star Bank.

Star Bank has $25 mllioj of bad long-term loans. The value of the long-term loans of Star Bank becomes $25 million.

Fill in the table below, and show how the balance sheet of Star Bank is affected by the events described below.

A) how are the shareholders of Star bank affected by the recession and the bad loans? Explain

B) How are the depositors of Star Bank affected by the recession and the bad loans? Explain

this if the full question

QUESTION 1 You are given the balance sheet of Star Bank below: Assets Liabilities Cash $20 million Deposits $120 million Long-term securities $70 million Long-term loans $50 million Net Worth $20 million Total $140 million Total $140 million Suppose the economy goes into a recession, and many borrowers could not pay back the money Star Bank has $25 million of bad long-term loans. The value of the long-term loans of Star Bank b Fill in the table below, and show how the balance sheet of Star Bank is affected by the even Assets Liabilities Cash Deposits Long-term securities Long-term loans Net Worth Total Total a) How are the shareholders of Star Bank affected by the recession and the bad loans? Explain b) How are the depositors of Star Bank affected by the recession and the bad loans? Explain For the toolbar press ALT+F10 (PC) or ALT+FN+F10 (Mac) BIUS Paragraph Anal 14 lii TIL QUESTION 1 You are given the balance sheet of Star Bank below: Assets Liabilities Cash $20 million Deposits $120 million Long-term securities $70 million Long-term loans $50 million Net Worth $20 million Total $140 million Total $140 million Suppose the economy goes into a recession, and many borrowers could not pay back the money Star Bank has $25 million of bad long-term loans. The value of the long-term loans of Star Bank b Fill in the table below, and show how the balance sheet of Star Bank is affected by the even Assets Liabilities Cash Deposits Long-term securities Long-term loans Net Worth Total Total a) How are the shareholders of Star Bank affected by the recession and the bad loans? Explain b) How are the depositors of Star Bank affected by the recession and the bad loans? Explain For the toolbar press ALT+F10 (PC) or ALT+FN+F10 (Mac) BIUS Paragraph Anal 14 lii TIL