The return on equity is:
A) the ratio of a bank's profits to its capital.
B) the ratio of a bank's profits to its expenses.
C) equal to its after-tax income.
D) equal to net income.
Correct Answer:
Verified
Q42: Because the return on equity quantifies how
Q43: A bank acquires capital by:
A)buying securities from
Q44: A bank's reserves are equal to:
A)deposits at
Q45: Which of the following arranges a bank's
Q46: The most liquid form of assets on
Q48: Another name for default risk is risk.
A)liquidity
B)interest
Q49: The cost to a bank of holding
Q50: Overnight bank-to-bank loans are called:
A)certificates of deposit.
B)federal
Q51: When a bank a loan, it removes
Q52: To find a bank's return on its
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