If a Bank's Return on Equity Remains Constant, but the Ratio

question 11

Multiple Choice

If a bank's return on equity remains constant, but the ratio of bank assets to bank capital increases:

• A)The bank's return on assets must have increased
• B)The bank's return on assets must have decreased
• C)The bank's assets and capital must have increased by the same percentage
• D)The bank must be unprofitable

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Definitions:

Concurrent Controls

Management techniques used to monitor processes and activities as they occur, allowing adjustments to be made in real time to ensure that objectives are met.

Steering Controls

Mechanisms or systems used to guide or manage the direction and movement of a vehicle or an organization.

End Results

The final outcomes or consequences of a process, action, or series of events.

Concurrent Control

A method of management where monitoring processes and activities take place during the task to ensure alignment with goals and standards.