Solved

Scenario: Alpha Bank Has $100,000 in Total Assets and $45,000

Question 166

Multiple Choice

Scenario: Alpha Bank has $100,000 in total assets and $45,000 in total liabilities. Beta Bank has $250,000 in total assets and $220,000 in total liabilities.
-Refer to the scenario above.Which of the two banks is more prone to bank runs and why?


A) Alpha Bank because it has less in total assets
B) Beta Bank because it has more in total liabilities
C) Alpha Bank because it is a smaller bank in general
D) Beta Bank because its total liabilities are closer to its total assets so it has lower stockholders' equity

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents