Bank Regulators Use the CAMELS System to Provide a Standardized

question 29

Multiple Choice

Bank regulators use the CAMELS system to provide a standardized assessment of a bank, where CAMELS stands for

• A)Cash, Assets, Management, Equity, Leverage, and Stability.
• B)Capital, Assets, Management, Earnings, Liquidity, and Sensitivity.
• C)Capital, Assets, Management, Earnings, Liabilities, and Stability.
• D)Cash, Assets, Management, Earnings, Liabilities, and Stability.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a company's assets over their useful lives.

Financial Statement

An official document detailing the monetary transactions and status of an organization, individual, or different entity.

Income Statement

A financial report that shows the company's revenues and expenses over a specific period, resulting in a net income or loss.

Trial-balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns that are equal, used to ensure the accuracy of financial transactions.