Question

Drake savings bank has deposits of $850 million. it holds reserves of $30 million and has purchased government bonds worth $150 million. the banks loans, if sold at current market value, would be worth $570 million. what is the total value of drake savings bank's assets? group of answer choices

O $1 billion
O $750 million
O $720 million
O $280 million

Answer 1

To calculate the total value of Drake Savings Bank's assets, we add up the deposits, reserves, government bonds, and loans. The total value of Drake Savings Bank's assets is $1 billion.

option a is the correct

Step-by-step explanation:

To calculate the total value of Drake Savings Bank's assets, we need to add up all the different categories of assets. The bank's assets consist of the deposits, reserves, government bonds, and loans.

Given the information provided:

• Deposits: $850 million
• Reserves: $30 million
• Government bonds: $150 million
• Loans: $570 million

To calculate the total assets, we add up all these values:

Total assets = Deposits + Reserves + Government bonds + Loans

Total assets = $850 million + $30 million + $150 million + $570 million

Total assets = $1 billion

Therefore, the total value of Drake Savings Bank's assets is $1 billion.