What is the highest write down of the bank

Assignment Help Business Economics
Reference no: EM131597870

Bank National has reserves of $120, loans at $280, checkable deposits at $340, and bank capital of $60. Regulations require that the bank's capital ratio (capital divided by total assets) must not go below 10%. What is the highest write down of the bank's loans that the bank can sustain without violating the requirement?

(a) $5

(b) $15

(c) $20

(d) $25

Please explain in details how you got your answer, thank you

Reference no: EM131597870

Questions Cloud

The purpose of the tree in the lobby : Whether the actions of the bank were appropriate or inappropriate.The reason why the town will or will not take down the tree in light of the protest.
How is progress coming on writing personal financial goals : How is progress coming on writing your personal financial goals? How do we make the goals measurable?
Implications of elasticity and utility pertain : How do the implications of elasticity and utility pertain to going back to college after losing my job?
Implement public health information technology projects : What are the main challenges involved in implementing public health information technology projects? Propose a viable solution to one of these challenges.
What is the highest write down of the bank : What is the highest write down of the bank's loans that the bank can sustain without violating the requirement?
Discuss health care organizational goals : In what ways can information technology support public health activities? Health care organizational goals? Provide examples for each.
Percent for taxable income : As of 2015, ranches were taxed at 15 percent for income up to $50,000; at 21 percent for income ranging from $50,000 to $79,000; at 28 percent for taxable
What is gray and zooms through the jungle at 10 miles per : What's gray and zooms through the jungle at 10 miles per hour? An elephant on a motor bike! A number of words have been removed from each sentence and listed below the sentence. Use the listed words to fill the blanks in the sentence.
Why do they pay half as much in medical costs : Why does every developed nation except the United States have universal health care?Why do they pay half as much in medical costs?

Reviews

Write a Review

Business Economics Questions & Answers

  Financial crisis lead to contraction in economic activity

Why is a financial crisis likely to lead to a contraction in economic activity?

  Many non-traded goods relative to traded goods

Let’s say that there are many non-traded goods relative to traded goods. You are comparing the income of a rich country to the income of a poor country. For the poor country, do you expect PPP-adjusted income to be higher or lower than income calcula..

  Low fixed costs also high variable costs

One organization must have high fixed costs also low variable cost also the other must have low fixed costs also high variable costs.

  More fundamental challenge to neoclassical economics

Both Veblen on one hand and Kahneman and Tversky oon the other hand challenged standard neoclassical notions of rationality. Explain the similarities and differences between Institutional Economics (Veblen) and Behavioral Economics (Kahneman and Tver..

  Explain the merging of sequential files

Explain the merging of sequential files. If examples are able to be used then please list them also.

  Positive or a normative statement

Explain which of the following is a positive or a normative statement.

  Should companies have a big role in improving the world

Should companies have a big role in improving the world? Do you think the pharmaceutical businesses have a social responsibility to make drugs that will combat diseases that are a result of poor living conditions, even though profits will be limited?..

  Explain why are trade negotiations usually mercantilist

Why are trade negotiations usually mercantilist, ie, why does country A agree to reduce its trade barriers in exchange for country B also agreeing to lower trade barriers, when economic theory says that both A and B benefit

  Maine and conduct business in that state

Currently, six sales associates live in Maine and conduct business in that state. They have lived in this state on the average of eight years. All products are shipped from the plant in Fulton to Maine. McCormick Manufacturing does not keep mercha..

  Difference in electronic commerce and electronic business

What is the difference between electronic commerce and electronic business according to Becker and Sampson? Briefly compare B2C, B2B, and B2G electronic commerce?

  Qgiven the demand function of a monopolistq 100 - pand the

q.given the demand function of a monopolistq 100 - pand the cost function faces himherc 100 80 qa. find out

  If the government were to increase taxes on gasoline

If the government were to increase taxes on gasoline, what will happen to the total government revenue? Why? What are you assuming about the elasticity of the demand curve of gasoline? What is the formula for elasticity? Would the government make mor..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd