If a Bank Needs to Raise the Amount of Capital

question 98

Multiple Choice

If a bank needs to raise the amount of capital relative to assets,a bank manager might choose to

• A)buy back bank stock.
• B)pay higher dividends.
• C)reduce the bank's assets by making fewer loans.
• D)sell securities the bank owns and put the funds into the reserve account.

---

Definitions:

Alphabetic Order

A method of arranging items based on the sequence of letters in the alphabet from A to Z.

Social Loafing

A scenario in which individuals working in a group setting display reduced effort in achieving objectives, unlike when working independently.

Deindividuation

A phenomenon where individuals in a group lose a sense of self-awareness and as a result, may act differently than they would alone, often leading to anti-normative and disinhibited behavior.

Group Polarization

Group polarization refers to the tendency for a group to make decisions that are more extreme than the initial inclination of its members, following group discussion.