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.

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Definitions:

Incremental Steps

Small, progressive actions or changes made to gradually achieve a larger goal.

Systematic Test

A methodical approach to testing that follows a plan, guidelines, or set procedures to evaluate outcomes.

Algorithms

Step-by-step procedures or formulas for solving problems or completing tasks, often used in computing and mathematics to ensure accuracy and efficiency.

Systematic Test

A methodical and structured approach to evaluating and measuring the functionality, performance, or reliability of a system or component.