Suppose Bank a Has Assets of 100,liabilities of 80,and Capital

question 58

Multiple Choice

Suppose bank A has assets of 100,liabilities of 80,and capital of 20.Its capital ratio is

• A)20%.
• B)25%.
• C)11%.
• D)10%.

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Definitions:

Competitive Market Economy

An economic system where businesses compete freely without undue interference, allowing supply and demand to determine prices and outputs.

Entrepreneur

An individual who organizes and operates a business, taking on greater than normal financial risks in order to do so.

Satisfaction Per Dollar

A measure of the utility or enjoyment a consumer receives from a product or service relative to its cost.

Market Entry And Exit

The process by which new competitors enter or existing firms exit a market, influencing competition and market dynamics.