Question

Stealth bank holds deposits of $200 million. it holds reserves of $15 million. it has purchased government bonds worth $75 million. the current value of its loans, if sold at market value, is $130 million. what is the value of the stealth bank’s liabilities? $20 million $200 million $5 million $330 million quiz bank

Answer 1

Stealth bank's liabilities is valued to: 200 million.

This is in consideration of the following acccounting concepts: Reserves are assets
Bonds are assets
Loans are receivable (assets)