Which of the Following Would Increase the Value of a Bank

question 38

Multiple Choice

Which of the following would increase the value of a bank charter?
I. Tightening restrictions on new charters
II. Broadening the activities banks can engage in
III. Increasing reserve requirements
IV. Doubling capital adequacy requirements

• A)I and II only
• B)II only
• C)III and IV only
• D)I and IV only
• E)II and III only

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Definitions:

Performance Measure

Metrics or standards used to evaluate the effectiveness, efficiency, and productivity of an individual, organization, or process.

Corporate Tax Rate

The tax imposed on the net income of a corporation.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity and preferred equity, determining its financial stability and strategy.

WACC

Weighted Average Cost of Capital; an analysis of a company's capital expenditure costs, weighted proportionally across different capital categories.