Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 million. The bank's loans, if sold at current market value, would be worth $600 million. What does Stealth bank’s net worth equal?

$270 million

Explanation:

Stealth bank has a deposit of $700 million

Stealth bank holds a reserve of $20 million

Government purchased bonds is $350 million

The bank loan is worth $600 million

The first step is to calculate the total assets

Assests= $600 million+$350 million+$20 million

= $970 million

Liabilities= $700 million

Therefore, stealth bank's net worth can be calculated as follows

Net worth= Assets-Liabilities

= $970 million-$700 million

= $270 million

Hence the net worth of stealth bank is $270 million.

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