Multiple Choice
The following table shows Free Donut Bank's balance sheet. Free Donut Bank has a required reserve ratio of 20 percent and has $75 in excess reserves.
-Refer to the table above.How does Free Donut Bank's stockholders' equity change if the bank's long-term debt decreases by $50 and its long-term investments increase by $50?
A) Increase by $100
B) Increase by $50
C) Decrease by $50
D) Stay the same
Correct Answer:
Verified
Correct Answer:
Verified
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