$\begin{array}{lccc}
\text { Securities (at par) } & \text { \$ 250 Deposits}& \$975 \
\text { Loans (at par)} & \text { \$ 760 Capital} & \$ 35
\end{array}$
If problem loans reduce the market value of the loan portfolio by 25 percent,what is the value of regulatory defined (book value)capital?

Question

$\begin{array}{lccc}
  \text { Securities (at par) } & \text { \$ 250  Deposits}& \$975  \
 \text { Loans (at par)} &    \text {  \$ 760  Capital} & \$ 35
\end{array}$
 If problem loans reduce the market value of the loan portfolio by 25 percent,what is the value of regulatory defined (book value)capital?

Quizplus · Accepted Answer

The Answer of $\begin{array}{lccc}
  \text { Securities (at par) } & \text { \$ 250  Deposits}& \$975  \
 \text { Loans (at par)} &    \text {  \$ 760  Capital} & \$ 35
\end{array}$
 If problem loans reduce the market value of the loan portfolio by 25 percent,what is the value of regulatory defined (book value)capital?

If Problem Loans Reduce the Market Value of the Loan