The Leverage Ratio Is Calculated as

question 148

Multiple Choice

The leverage ratio is calculated as

• A)assets minus liabilities.
• B)assets divided by bank capital.
• C)the reciprocal of the required reserve ratio.
• D)the required reserve ratio multiplied by bank capital.

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Definitions:

Share Options

Options given by a company to its employees as part of their compensation package, allowing them to purchase shares of the company at a future date at a predetermined price.

Vesting Date

The date on which an employee gains the right to receive benefits or stock options from an employer's plan.

Share-based Payment

A transaction in which the entity acquires goods or services by issuing shares of its equity or share options rather than with cash or other assets.

AASB 2

An Australian Accounting Standards Board standard that specifies the accounting requirements for share-based payment transactions.