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The Practice of Keeping High-Risk Assets on a Bank's Books

question 28

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The practice of keeping high-risk assets on a bank's books while removing low-risk assets with the same capital requirement is known as


Definitions:

AFC (Average Fixed Cost)

The fixed costs (expenses that do not change with the level of production) divided by the quantity of goods or services produced, typically decreasing as production increases.

Marginal Cost

The cost increase that comes with producing an additional unit of a product or service.

Marginal Revenue

The heightened income realized from the sale of one more unit of a good or service.

Marginal Cost

The price involved in creating one more unit of a specific good or service.

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