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Question 80 0.1pts If a banks assets are $500 million and its liabilities are $380 million, then its net worth (bank capital
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Answer #1

Ans.- (D)

Net worth = Assets - Liabilities = 500- 380 = 120 Million

New bank assets = 500(1.06) = 530

New bank liability= 399

New net worth = 530-399 = 131 million

% change in net worth = 131-120/120 *100 = 9.17

So, correct answer is (D)

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