Under Historical Accounting Methods for the Market Value of Capital

Multiple Choice

Under historical accounting methods for the market value of capital, FIs

A) must write down the value of their assets to fully reflect market values.
B) have a great deal of discretion in timing the write downs of problem loans.
C) must conform to regulatory write-down schedules.
D) have an incentive to fully reflect problems in the asset portfolio as they become known.
E) invest in expensive computerized bookkeeping systems.