A Bank with a Leverage Ratio of 6

question 50

Multiple Choice

A bank with a leverage ratio of 6.5 to 1 has

• A)$6.50 in assets for every $1 in liabilities.
• B)$6.50 in assets for every $1 in capital.
• C)$1 in assets for every $6.50 in capital.
• D)$1 in assets for every $6.50 in liabilities.

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Definitions:

Board Of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Employees

Individuals who are hired by a company to perform specific duties and tasks in exchange for compensation, contributing to the company's operations and goals.

Common Stockholders

Individuals or entities that own shares in a company's common stock, granting them voting rights and a share in the company's profits through dividends.

Minimum Amount

The smallest quantity or value permitted or possible in a given set of circumstances.