Normally, the market value of equity exceeds the book value of equity for commercial banks.
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Q1: Bank capital does NOT include reserves set
Q2: Bank equity includes surplus and undivided profits
Q4: Market value accounting would make the value
Q5: Large banks tend to use more long-term
Q6: Subordinated notes and debentures issued by banks
Q7: Losses on defaulted loans that were anticipated
Q8: The provision for loan losses account can
Q9: Today, banks with assets more than $500
Q10: For failed banks, long-term debt serves the
Q11: Capital requirements do NOT reduce the moral-hazard
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