Feedback for Ben and Tim are discussing about capital structures in banks and made the following statements?Statement 1: Equity Capital is referred to as gone concern capitalStatement 2: Debt is referred to as going concern capital.Statement 3: Deposits are at risk when there are looses more than combined of equity & debt capital. Which of the following statement is/are correct?
The wording in the third statement is unclear, a rephrase would be much appreciated as I couldn’t understand it at all. Thank you.
Location: Quiz Reading 01 Banks
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