For a Given Return on Assets,the Lower the Bank Capital

question 76

Multiple Choice

For a given return on assets,the lower the bank capital is,

• A) the lower the return for the owners of the bank will be.
• B) the higher the return for the owners of the bank will be.
• C) the lower the credit risk for the owners of the bank will be.
• D) both A and C of the above will happen.

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Definitions:

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