When It Acts as a Lender of Last Resort,the IMF

question 11

True/False

When it acts as a lender of last resort,the IMF may increase the likelihood that financial institutions take excessive risks and thus increase moral hazard.

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Definitions:

Return On Equity

A metric that gauges the effectiveness of a firm in utilizing investments to drive earnings growth, determined by dividing net income by shareholders' equity.

Earnings Per Share

A financial metric calculated by dividing the company's net income by the number of its outstanding shares, indicating the profitability of a company on a per-share basis.

Return On Total Assets

A profitability ratio that measures the net income generated from total assets during a period.

Earnings Per Share

A metric that calculates a company's profit divided by its number of outstanding shares of common stock.