What is the difference between the economic definition of capital and the book value definition of capital?

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What is the difference between the economic definition of capital and the book value definition of capital?
a. How does economic value accounting recognize the adverse effects of credit risk?
b. How does book value accounting recognize the adverse effects of credit risk?
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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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