Stealth bank has deposits of $300 million. It holds reserves of $20 million and has purchased government bonds worth $300 million. The bank’s loans, if sold at current market value, would be worth $600 million. What does Stealth bank’s net worth equal?
A. $20 million
B. $620 million
C. $1.22 billion
D. $920 million
Answer:B
Stealth bank has deposits of $300 million. It holds reserves of $20 million and has purchased government bonds worth $300 million. The bank’s loans, if sold at current market value, would be worth $600 million. What does Stealth bank’s net worth equal?
A. $20 million B. $620 million C. $1.22 billion D. $920 million
Explanation: Type: Multiple Choice