Suppose Bank a Has Assets of 100,liabilities of 60,and Capital

question 47

Multiple Choice

Suppose bank A has assets of 100,liabilities of 60,and capital of 40.Its leverage ratio is

• A)1.5.
• B)2.5.
• C)0.6.
• D)0.4.

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Definitions:

BCG Matrix

A strategic analysis tool that helps organizations prioritize their business units or products by categorizing them into four types based on market growth and market share: Stars, Cash Cows, Question Marks, and Dogs.

Cash Flow

Cash flow refers to the net amount of cash and cash-equivalents being transferred into and out of a business.

Question Marks

Products or businesses that operate in high-growth markets but have low market share, often requiring significant investment to improve their position.