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:
Verified
Q161: The following table shows the assets and
Q162: Scenario: Alpha Bank has $100,000 in total
Q163: A bank run occurs when _.
A) a
Q164: Differentiate between a solvent bank and an
Q165: Which of the following is a role
Q167: The Bank of Lithasia plans to increase
Q168: If Safeco Bank is shut down by
Q169: Scenario: Alpha Bank has $100,000 in total
Q170: An institutional bank run is most likely
Q171: Scenario: Alpha Bank has $100,000 in total
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents