Scenario: Alpha Bank Has $100,000 in Total Assets and $45,000

Multiple Choice

Scenario: Alpha Bank has $100,000 in total assets and $45,000 in total liabilities. Beta Bank has $250,000 in total assets and $220,000 in total liabilities.
-Refer to the scenario above.What would happen to each bank if its total assets dropped by 20 percent?

A) Both banks would still be solvent.
B) Both banks would become insolvent.
C) Alpha Bank would be insolvent, and Beta Bank would still be solvent.
D) Alpha Bank would still be solvent, and Beta Bank would be insolvent.