All of the Following Are Sources of Common Equity Capital

question 43

Multiple Choice

All of the following are sources of common equity capital for banks except

• A) capital stock
• B) undivided profits
• C) capital notes
• D) special reserve accounts

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Definitions:

Bushel

A unit of volume that is used in the United States for measuring agricultural commodities, including grains and fruits.

Interest Rate Swap

A financial derivative that companies use to exchange interest rate payments on debt over a set period.

Floating-Rate

An interest rate that fluctuates in response to market conditions or an index.

Currency Swap

Involves an agreement to exchange principal and interest in one currency for the same in another currency.