If a Bank Has a Leverage Ratio of 0

question 43

Multiple Choice

If a bank has a leverage ratio of 0.1 and a return on capital of 2%, what is its return on equity?

• A)0)2%
• B)2)1%
• C)5%
• D)20%

---

Definitions:

Civil Law System

A legal system based on written codes and statutes, as opposed to common law, which is based on precedent decisions and judicial rulings.

Statutory Code

A legal framework enacted by a legislative body that governs a specific set of laws, often arranged by subject.

Seventh Amendment

A provision of the U.S. Constitution that guarantees the right to a jury trial in certain civil cases, according to federal law.

Jury Trial

A legal proceeding where a group of people (the jury) makes a decision or finds facts in a case.