7. The bank's balance sheet The following table shows the balance sheet for Main Street...
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7. The bank's balance sheet The following table shows the balance sheet for Main Street Bank. Compute the value of the bank's capital and enter it in the balance sheet. Then answer the question that follows. Reserves Balance sheet of Main Street Bank as of January 4, 2021 Assets Loans Securities $1,200,000 Total $175,000 $4,300,000 Liabilities Checkable deposits Bank's capital (net worth) $5,675,000 Total $5,525,000 $5,675,000 Suppose that Darnell, a borrower of Main Street Bank, defaults on a $350,000 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
7. The bank's balance sheet The following table shows the balance sheet for Main Street Bank. Compute the value of the bank's capital and enter it in the balance sheet. Then answer the question that follows. Suppose that Darnell, a borrower of Main Street Bank, defaults on a $350,000 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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