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tsk tsk
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A year ago
Scenario: Amateur Bank is just starting out and has had the following transactions:

• Amateur Bank takes out a $3,000 loan from Pro Bank.
• Amateur bank has $2,500 invested in building and operations.
• Suzie deposits $1,200.
• Joe deposits $750.
• Robbie takes out a loan for $900.
• Jackie takes out a business loan for $625.
• Amateur Bank invests $1,000 in GoPro.


Refer to the scenario above. Now Amateur Bank gets a 25 percent return on its investment with GoPro, and Robbie pays back her loan plus 20 percent interest. Amateur Bank uses these returns on the loan and the investment to pay off part of its loan from Pro Bank. Also, Jackie defaults on her loan. What is the current value of Amateur Bank's stockholders' equity?

▸ $305

▸ $155

▸ $0; the bank is insolvent.

▸ $625
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
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sbbaltsbbalt
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A year ago
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