For a Given Return on Assets,the Lower Is Bank Capital

question 146

Multiple Choice

For a given return on assets,the lower is bank capital

• A)the lower is the return for the owners of the bank.
• B)the higher is the return for the owners of the bank.
• C)the lower is the credit risk for the owners of the bank.
• D)the lower the possibility of bank failure.

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Definitions:

Position Power

The authority and influence a person holds in an organization based on their job or position.

Reward And Punish

Techniques used in managing behavior by offering incentives for desired actions and penalties for undesirable ones.

Situational Control

Refers to the ability to influence the outcome of specific situations by effectively managing variables and adapting strategies.

Task Structure

The way tasks are organized, defined, and executed within teams or projects, including clarity, complexity, and the processes used.