A Bank's Return on Equity (ROE) Is Calculated By

question 84

Multiple Choice

A bank's return on equity (ROE) is calculated by:

• A) dividing the bank's net profit after taxes by the bank's capital.
• B) dividing the banks liabilities by the bank's capital.
• C) taking the bank's assets plus the net profit after taxes and dividing this sum by the bank's capital.
• D) dividing the bank's net profit after taxes by the sum of the bank's assets and its liabilities.

---

Definitions:

Diaphragm

A large, dome-shaped muscle located at the base of the lungs and thoracic cavity that contracts and relaxes to aid in the breathing process by creating a vacuum that pulls air into the lungs.

Elastic Properties

Characteristics of materials that allow them to stretch and return to their original shape without permanent deformation.

External Intercostal Muscles

The External Intercostal Muscles are a group of muscles found between the ribs that aid in the process of inhalation by elevating the ribcage, expanding the thoracic cavity.

Pleural Cavity

The thin fluid-filled space between the two pulmonary pleurae of each lung, involved in respiratory mechanics.