Mankiw's textbook mentions the 2008-2009 Financial Crisis. During that period falling house prices caused many banks and other financial institutions to incur losses on mortgage-backed securities. In certain cases, the losses were so large that banks became insolvent. First Bank wishes to avoid such a situation. As such, you are presented with the table below and are asked to indicate when owners' equity will fall to zero. First Bank's Balance Sheet Liabilities & Net worth Reserves R54 750 Deposits R730 000 answered Loans R500 000 Debt R18 000 Securities R295 250 Equity R102 000 Select one: Od Owners' equity will fall to zero if loan defaults reduce the value of total assets by 2.12%. Ob Owners' equity will fall to zero if loan defaults reduce the value of total assets by 12%. Oc Owners' equity will fall to zero if loan defaults reduce the value of total assets by 58.82%. Owners' equity will fall to zero if loan defaults reduce the value of total assets by 8.3% Od Assets