If the commercial mortgages on the balance sheet of this bank decline in value then the value of the bank's equity will rise.a.
Trueb. False
1 answer:
Answer: False
Explanation:
According to the Accounting equation, the debit side must equal the credit side.
The Commercial mortgages for this bank are on the debit side so if they reduce, the credit side will have to reduce as well to remain in balance.
The Equity will therefore not rise but rather decrease in value so that the two sides will be balanced.
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