29. For a given return on assets, holding other factors constant, Question 29 options: a) a lower capital-to-asset ratio has no effect on the return on equity of the bank. b) the lower is bank capital relative to assets, the higher is the return on equity of the bank. c) the lower is bank capital relative to assets, the lower is the credit risk for the owners of the bank. d) the lower is bank capital relative to assets, the lower is the return on equity of the bank.
29. For a given return on assets, holding other factors constant, Question 29 options: a) a lower capital-to-asset ratio has no effect on the return on equity of the bank. b) the lower is bank capital relative to assets, the higher is the return on equity of the bank. c) the lower is bank capital relative to assets, the lower is the credit risk for the owners of the bank. d) the lower is bank capital relative to assets, the lower is the return on equity of the bank.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section: Chapter Questions
Problem 3WNG
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Question
29.
For a given return on assets, holding other factors constant,
Question 29 options:
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