If a Bank's Management Uses "The Discipline of the Financial

question 28

Multiple Choice

If a bank's management uses "the discipline of the financial marketplace" to gauge its liquidity position,one of the indicators of this market test of adequacy of a bank's liquidity position is:

• A)the bank's return on equity capital.
• B)the volume of bank stock outstanding.
• C)the bank's return on assets.
• D)the size of risk premiums on CDs the bank issues.
• E)None of the options is correct.