Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Large increases in the value of the OBS assets can render an FI economically insolvent.
B) Large increases in the value of the OBS liabilities will not render an FI economically insolvent as the liabilities are only contingent.
C) Large increases in the value of the OBS liabilities will not render an FI economically insolvent as the net worth of the institution will not be affected.
D) Large increases in the value of the OBS liabilities can render an FI economically insolvent.