The following table shows the market value balance sheet of a failed bank ($ millions):
$\begin{array}{lccc}
\text { Assets } & \text {400 Insured Deposits }& \$200\
& \text { Urinsured Deposits} & \$400
\end{array}$

What is the market value of capital?

Question

The following table shows the market value balance sheet of a failed bank ($ millions): 
$\begin{array}{lccc}
  \text { Assets  } & \text {400 Insured Deposits }&  \$200\
& \text { Urinsured Deposits} & \$400
\end{array}$
 
 What is the market value of capital?

Quizplus · Accepted Answer

The market value of capital is calculated as the difference between the total assets and total liabilities. Here, the total assets are $400 million, and the total liabilities (insured and uninsured deposits) are $600 million ($200 million + $400 million). Therefore, the market value of capital is $400 million - $600 million = -$200 million.

The Following Table Shows the Market Value Balance Sheet of a Failed