Stealth bank has deposits of $700 million. it holds reserves of $20 million and haspurchased 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?
a. $1.3 billion
b. $1.7 billion
c. $970 million
d. $470 million

C. $970 million

Explanation:

In order to calculate Stealth bank's assets we need to figure which of the following come under the category of assets,

The deposits of $700 million are not assets as they are liabilities which they have to pay back to the depositors.

The $20 million reserves are assets as that is the money they they have deposited as reserve to the FED.

The $350 million government bonds are assets owned by the bank as they are financial securities owned by the bank

The $600 million market value worth of loans are the bank's assets as they are owed this money by the borrowers.

So the total assets of the bank are reserves + government bonds + loans

= 20 million + 350 million + 600 million

answer; i do believe that the correct answer is (6) points in georgia;