Discussion:
Stealth bank is holding $4 million in reserves, $ 9 million in government bonds and $9.6 million in low risk mortgage loans. Out of the $20 million in customer deposits, Stealth holds $13.1 million in the form of certificate deposits
Describe the formula for determining Stealth Bank's net worth, and using the figures above, determine the bank's net worth. Identify the criteria for classifying a bank as healthy or unhealthy and determine which applies to Stealth Bank in these circumstances.