If a Bank Needs to Raise the Amount of Capital

question 56

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) sell bank stock
• D) sell securities the bank owns and put the funds into the reserve account

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Definitions:

Neutral Third Party

An unbiased individual or entity not directly involved in a situation who may facilitate conflict resolution or negotiations.

Mediation

Use of a neutral third party to help settle a labour–management dispute.

Union Activities

Actions and efforts carried out by labor unions, including negotiation for better wages and working conditions, strikes, and worker advocacy.

Employee Behaviours

The range of actions and conduct exhibited by employees in the workplace, influencing productivity, culture, and interpersonal dynamics.