Reference: Ref 19-1
&Nbsp;
(Table: Bank Balance Sheet) Based on l

Multiple Choice

$$\begin{array}{l}\text { Table: Bank Balance Sheet }\\\begin{array} { l r l r } \hline \text { Assets } & & { \text { Liabilities \& Net Worth } } \\\hline \text { Reserves } & \$ 10,000 & \text { Deposits } & \$ 100,000 \\\text { Loans } & 100,000 & \text { Debt } & 20,000 \\\text { Securities } & 40,000 & \text { Equity } & 30,000\end{array}\end{array}$$ Reference: Ref 19-1
 
(Table: Bank Balance Sheet) Based on the table, owners' equity will fall to zero if loan defaults reduce the value of total assets by percent.

A) 10
B) 20
C) 30
D) 40