Question

Stealth bank has deposits of $600 million. It holds reserves of $30 million and government bonds worth $80 million. If the bank sells its loans at market value of $400 million, what will its total assets equal?

A. $110 million
B. $710 million
C. $480 million
D. $510 million

Answer 1

The total assets of the bank will equal $710 million.

Step-by-step explanation:

To calculate the total assets of the bank, we need to add up the various components. The bank has deposits of $600 million, reserves of $30 million, government bonds worth $80 million, and loans sold at market value of $400 million.

So, the total assets will be $600 million + $30 million + $80 million + $400 million = $1,110 million.

Therefore, the correct answer is option B. $710 million.