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If a Bank's Assets Are $500 Million and Its Liabilities

Question 124

Multiple Choice

If a bank's assets are $500 million and its liabilities are $380 million,then its net worth (bank capital) is ____________________.If the bank's assets then rise by 6 percent at the same time that its liabilities rise by 5 percent,the percentage change in the bank's net worth will be approximately _______________ percent.


A) $440 million; 10.2
B) $120 million; 1.2
C) $100 million; 11.2
D) $120 million; 9.2

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