What Is the Return on Equity for a Bank That

question 25

Multiple Choice

What is the return on equity for a bank that has an equity multiplier of 14, an interest expense ratio of 4%, and a return on assets of .9%?

• A) 1.3%
• B) 4.0%
• C) 9.0%
• D) 12.6%
• E) 8.6%

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Definitions:

Competitive Forces

Competitive forces refer to the various external pressures that businesses face in the market, including competition from other firms, the bargaining power of customers and suppliers, and the threat of substitutes.

Competitive Behavior

Actions taken by businesses to gain advantage over their competitors, often through pricing, innovation, or quality improvements.

Aggregate Consumption

The total amount of goods and services consumed in an economy over a specified period.

Voter Incentive

Factors or motivations that influence individuals to participate in the voting process during elections.