As a Result of Loan Write-Offs, Bank a Has to Be

Multiple Choice

As a result of loan write-offs, Bank A has to be liquidated by the regulators.The book value of the assets and liabilities of the bank is presented below (in millions of dollars) .The market value of the loans has been estimated at $240 million. $$\begin{array} { | l | l | l | l | } \hline \text { Loans (book value) } & \$ 340 & \text { Insured Deposits } & \$ 200 \\\hline & & \text { Uninsured Deposits } & \$ 100 \\\hline & & \text { Equity } & \$ 40 \\\hline\end{array}$$ What is the current net worth (market value) of the bank?

A) +$40 million.
B) $0 million.
C) -$40 million.
D) -$60 million.
E) -$100 million.