In the Absence of Regulation,banks Would Probably Hold

question 94

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, increasing the return on equity.
• D) none of the above.

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Definitions:

Make-Or-Buy Policy

A decision-making process used by companies to determine whether to produce goods internally or purchase them from an external supplier.

Manufacturing And Operations

The processes involved in producing goods and managing their production in factories or plants.

Finished Product

The final output of a manufacturing process, ready for sale or distribution to the end-user.

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage, indicating the financial health and profitability of a product or service.