The difference between the Market Value of Equity versus the Book Value of Equity for a depository institution is influenced by which of the following factors?

Question

Quizplus · Accepted Answer

The difference between the Market Value of Equity and the Book Value of Equity for a depository institution can be influenced by changes in the market value of assets and liabilities due to fluctuations in interest rates, foreign exchange rates, and the replacement cost of fixed assets. These factors can cause the market value to diverge from the book value as they reflect the current economic conditions and market perceptions, which are not always captured in the book value.

The Difference Between the Market Value of Equity Versus the Book