The Leverage Ratio Is Calculated as

question 148

Multiple Choice

The leverage ratio is calculated as

• A)assets minus liabilities.
• B)assets divided by bank capital.
• C)the reciprocal of the required reserve ratio.
• D)the required reserve ratio multiplied by bank capital.

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Definitions:

Increase

Increase refers to the action of becoming larger or greater in size, number, value, or amount.

Standard Error

A statistical measure that describes the accuracy with which a sample distribution represents a population, specifically the standard deviation of the sampling distribution of a statistic.

Independent Variables

Variables in an experiment or model that are manipulated or classified by the researcher to observe their effect on the dependent variable(s).

Squared Differences

The result of squaring the difference between two values, often used in statistical calculations to measure variance.