The Minimum Amount of Owners' Equity in a Bank Mandated

question 94

Multiple Choice

The minimum amount of owners' equity in a bank mandated by regulators is called a _____ requirement.

• A) reserve
• B) margin
• C) liquidity
• D) capital

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Definitions:

Linear Relationship

A type of association where changes in an independent variable result in proportional changes in a dependent variable, represented by a straight line in graph form.

Covariance

A measure that determines the degree to which two variables change together.

Correlation Coefficient

A statistical measure that describes the size and direction of a relationship between two or more variables.

Covariance

A measure of the joint variability of two random variables.