Which of the Following Are Primary Concerns of the Bank

question 50

Multiple Choice

Which of the following are primary concerns of the bank manager?

• A) Maintaining sufficient reserves to minimize the cost to the bank of deposit outflows
• B) Extending loans to borrowers who will pay low interest rates, but who are poor credit risks
• C) Acquiring funds at a relatively high cost, so that profitable lending opportunities can be realized
• D) Maintaining high levels of capital and thus maximizing the returns to the owners.

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Definitions:

Repurchased

Refers to the act of a company buying back its own shares from the marketplace, which can affect the company's stock price and earnings per share.

Treasury Stock

Shares that were issued by a company and have been repurchased from the market, but not retired.

Stockholders' Equity

The owners' claim on the company's assets, calculated as the company's total assets minus its total liabilities; also known as shareholders' equity.

Assets

Resources owned or controlled by a business, providing future economic benefits.