Which of the Following Is not a Characteristic of a Typical

question 76

Multiple Choice

Which of the following is not a characteristic of a typical commercial bank?

• A) Most banks own few fixed assets.
• B) Most banks have a high degree of operating leverage.
• C) Most banks have few fixed costs.
• D) Many bank liabilities are payable on demand.
• E) Banks generally operate with less equity capital than non-financial firms.

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