In the Absence of Regulation,banks Would Probably Hold

question 51

Multiple Choice

In the absence of regulation,banks would probably hold

• A)too much capital,reducing the efficiency of the payments system.
• B)too much capital,reducing the profitability of banks.
• C)too little capital.
• D)too much capital,making it more difficult to obtain loans.

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Definitions:

Shares Outstanding

Represents the total number of a company's shares that are currently owned by shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.

Net Income

The total earnings of a company after subtracting all expenses from revenue, including taxes and operating expenses.

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company's worth.