An FI may be insolvent in market value terms even if the book value of equity is positive.

Name: An FI may be insolvent in market value terms even if the book value of equity is positive.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

Market value reflects the stock market's perception of the firm's value, which may differ from the book value. Thus, it is possible for the market value of an FI to be negative, even if the book value of equity is positive.

An FI May Be Insolvent in Market Value Terms Even