Question

Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 million. The banks loans, if sold at current market value, would be worth $600 million. What is the total value of Stealth bank's assets?

Answer 1

Answer:

Stealth bank's assets = $970 million

Explanation:

Given:

Bank deposit = $700 million

Reserve = $20 million

Purchase price of government bond = $350 million

Bank loan current value = $600 million

Computation of Total value of Stealth bank's assets

Stealth bank's assets = Bank loan current value + Reserve + Purchase price of government bond

Stealth bank's assets = $600 million + $20 million + $350 million

Stealth bank's assets = $970 million