Economic Capital Is

question 65

Multiple Choice

Economic capital is:

• A)the asset and liability values of an FI reported according to their historical costs
• B)the amount of capital that the DI's shareholders are prepared to contribute so that the business remains as a going concern
• C)a measure of an FI's capital that is equal to the difference between the market value of its assets and the market value of its liabilities
• D)allows balance sheet values to reflect current rather than historical prices

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Definitions:

Administrative Competence

Refers to the ability to effectively manage, direct, and apply administrative processes and practices.

Narrowly Diverse Culture

A narrowly diverse culture is characterized by minimal variation in cultural, ethnic, or thought diversity, often leading to homogeneity in perspectives and approaches.

Management Philosophy

Links key goal-related issues with key collaboration issues to come up with general ways by which the firm will manage its affairs.

Organizational Rituals

Established ceremonies or practices within a company that reinforce the cultural values and norms.