What is the leverage implied by the bank balance sheet listed below?

Name: What is the leverage implied by the bank balance sheet listed below?
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Quizplus · Accepted Answer

To calculate the leverage implied by the bank balance sheet, we need to divide the total assets by the total equity. In this case, total assets are $80,000 and total equity is $10,000, so the leverage is 8-to-1 ($80,000 / $10,000 = 8). Therefore, the best choice is C.

What Is the Leverage Implied by the Bank Balance Sheet