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Question
Standard Bank, a U.S. national bank, has $50 million in unimpaired capital and surpluses and $86 million in total time and savings deposits. Average revenue for the bank in the last three years is $12.5 million and a net interest income of $3.2 million. Pluto Inc. has applied for an unsecured loan of $9 million to the bank. What is the maximum amount of loan the bank can make to Pluto?
A. $9 million
B. $4.5 million
C. $7.5 million
D. $0.9 million
E. The bank cannot make unsecured loans
Answer
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