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:

Pay Flexibility

The ability of employers to adjust wages based on factors such as market conditions, employee performance, or economic pressures.

Functional Flexibility

The ability of an organization to adapt and respond to changes by reallocating and utilizing its resources or workforce in different functions or roles.

Procedural Flexibility

The ability to adapt and change procedures and processes to meet different circumstances or preferences.

Written Rules

Formal guidelines and regulations that are documented and used to govern the actions and behaviors of members within an organization or society.