The leverage ratio is the ratio of a bank's
A) assets divided by its liabilities.
B) income divided by its assets.
C) capital divided by its total assets.
D) capital divided by its total liabilities.
Correct Answer:
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Q22: To be considered well capitalized,a bank's leverage
Q23: Increased size of financial institutions resulting from
Q24: The FDIC must take steps to close
Q25: A bank failure is less likely to
Q26: Banks engage in regulatory arbitrage by
A)keeping high-risk
Q28: The too-big-to-fail policy
A)reduces moral hazard problems.
B)puts large
Q29: A problem with the too-big-to-fail policy is
Q30: The practice of keeping high-risk assets on
Q31: Off-balance-sheet activities
A)generate fee income with no increase
Q32: The government safety net creates both an
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