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 Gud Bank: \text { Gud Bank: } Bad Bank Buys the Bad Loans for $232

Question 95

Multiple Choice

 Gud Bank: \text { Gud Bank: }

 Cash $200 Goodloans $1,000 Bad Loans $380 Total $1,580 Bad Bank:  Cash $240 Loans 0 Total$240 Deposits$1,000 Puychased funds$300 Equity$280$1,580 Bonds$120 Preferred stock$40 Common stock$80$240\begin{array}{l}\begin{array}{lll}\text { Cash } & & \$ 200 \\ \text { Goodloans } & & \$ 1,000 \\ \text { Bad Loans } & & \$ 380 \\ \text { Total } & & \$ 1,580 \\ &\text { Bad Bank: } & \\ \text { Cash } & & \$ 240\\\text { Loans } & & 0 \\ \\\text { Total} & & \$ 240 \\\end{array}\begin{array}{lll}\text { Deposits} &\$ 1,000 \\ \text { Puychased funds} &\$ 300 \\ \text { Equity} &\$ 280 \\ & \$ 1,580 \\\\\text { Bonds} & \$ 120\\ \text { Preferred stock} &\$ 40 \\ \text { Common stock} &\$ 80 \\ & \$ 240 \end{array}\end{array}

Bad Bank buys the bad loans for $232.The proceeds of the loan sale are used by Good Bank to pay off purchased funds.
If the proceeds of the loan sale are used to pay off purchased funds,what will be the balance of the purchased funds for Good Bank after the transaction?


A) $1,200.
B) $232.
C) $132.
D) $68.

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