A bank has the following balance sheet Cash $10 min Loans and securities $125 min Deposits $120 mln Equity $ 15 min Depositors request $20 mln in withdrawals. Assuming no new deposits or raising of capital and any selling of loans and securities will only get 75% of its stated value, what possibilities will occur? O Cash will go down by $10 min, deposits down by $20 mln. loans will go down by $13.33 min, and equity will be increased by $3.33 min O Cash will go down by $20 mln. deposits down by $20 mln, and equity down by $20 min O Cash will go down by $10 min, deposits down by $20 mln, loans will go down by $13.33 mln, and equity will be reduced by $3.33 min. O No answer text provided.
A bank has the following balance sheet Cash $10 min Loans and securities $125 min Deposits $120 mln Equity $ 15 min Depositors request $20 mln in withdrawals. Assuming no new deposits or raising of capital and any selling of loans and securities will only get 75% of its stated value, what possibilities will occur? O Cash will go down by $10 min, deposits down by $20 mln. loans will go down by $13.33 min, and equity will be increased by $3.33 min O Cash will go down by $20 mln. deposits down by $20 mln, and equity down by $20 min O Cash will go down by $10 min, deposits down by $20 mln, loans will go down by $13.33 mln, and equity will be reduced by $3.33 min. O No answer text provided.
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 29P
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