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The Fact That Capital-Asset Ratios in the Banking Industry Are

Question 41

Multiple Choice

The fact that capital-asset ratios in the banking industry are today at about half their level of 1930 is best explained by the


A) existence of deposit insurance.
B) wider range of good investments available to bank managers today.
C) fact that the value of bank assets has not increased as fast as the value of bank capital.
D) absence of federal regulation.

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