The Move Toward Market Value Accounting

Multiple Choice

The move toward market value accounting

A) increases banks' incentives to sell loans to avoid reporting capital losses.
B) decreases banks' incentives to sell loans to avoid reporting capital losses.
C) increases banks' incentives to sell loans since all assets will automatically be marked to market.
D) decreases banks' incentives to sell loans since all assets will automatically be marked to market.
E) has no impact on the banks' incentives to sell loans.