The Ratio of Core Capital to Average Total Assets Is

question 126

Multiple Choice

The ratio of core capital to average total assets is called the:

• A)supplemental capital ratio.
• B)leverage ratio.
• C)long-term capital ratio.
• D)GAAP capital ratio.
• E)None of the options is correct.

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Definitions:

Certainty Effect

The psychological phenomenon where people tend to give greater weight to outcomes that are certain, compared to outcomes that are probable.

Liquidate Resources

Refers to the process of converting assets or resources into cash or cash equivalents by selling them in the market.

Risk Aversion

The tendency to avoid taking risks and prefer safer options.

Fixed Income

A type of investment security that pays investors fixed interest or dividend payments until its maturity date.