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A Bank Has (In Millions): $400 Assets, $280 Deposits, and $80

Question 105

Multiple Choice

A bank has (in millions) : $400 assets, $280 deposits, and $80 debt. If the bank's assets decrease by 10 percent, by how much does the bank's capital change?


A) It decreases by 100 percent.
B) It decreases by 5 percent.
C) It increases by 100 percent.
D) It increases by 5 percent.

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