Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 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. $120 million
B. $270 million
C. $1.02 billion
D. $970 million
Answer:B
Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 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. $120 million B. $270 million C. $1.02 billion D. $970 million
Explanation: Type: Multiple Choice