Banks a and B Have the Same Net Income

question 3

Multiple Choice

Banks A and B have the same net income. Bank A has a higher capital ratio and more assets than B. Bank A's return on assets is ____ than Bank B's. Bank A's return on equity is ____ than Bank B's.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

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Definitions:

Receiving Element

A component or part that accepts or takes in signals, data, or substances in a mechanical system, electronic device, or biological organism.

Poor Acoustics

The aspect of a space that makes it hard to hear or understand sounds clearly, often due to echo or background noise.

Noise

Unwanted sound that can interfere with communication or distract from work.

Effective Listener

A person who actively engages in listening, fully concentrating, understanding, and responding thoughtfully to what is being said.