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A $200 Million Loan Commitment Has an Up-Front Fee of 20

Question 24

Multiple Choice

A $200 million loan commitment has an up-front fee of 20 basis points and a back-end fee of 25 basis points on the unused portion.
-What is the balance sheet capital?


A) -$60 million.
B) $60 million.
C) $740 million.
D) $800 million.
E) This question cannot be answered without information about off-balance sheet assets and liabilities.

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