Please give the answer as true or false and explain why it is true or false.

1. Bank XYZ can withstand a 5% drop in loan value and still be well capitalized. Well capitalized means an Equity/Asset ratio of 6%.

Reserves $10 million. Loans $90 million. Deposits $90 million. Bank Capital $10 million.

True/False

2. Bank XYZ can withstand a 20% drop in asset value and still be well capitalized. Well capitalized means an Equity/Asset ratio of 8%.

Reserves $10 million. Loans $90 million. Deposits $90 million. Bank Capital $10 million.

True/False

3. Bank XYZ can withstand a 10% drop in loan value and still be well capitalized. Well capitalized means an Equity/Asset ratio of 8%.

Reserves $10 million. Loans $90 million. Deposits $90 million. Bank Capital $10 million.

True/False