A bank takes deposits and uses the funds to make commercial loans. Hence, the _____ increases.
A) level of capital
B) ROA
C) ROE
D) all of the above
Correct Answer:
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Q32: Bank sales of mortgage backed securities are
Q33: If a bank borrows short and lends
Q34: Liabilities include
A) borrowings.
B) net worth.
C) savings deposits.
D)
Q35: Bank reserves are a combination of required
Q36: A bank increases its level of required
Q38: A bank suffers defaults on some loans.
Q39: The gross spread is the most important
Q40: Off-balance-sheet activities increase the risk of banks.
Q41: The two main categories of profit making
Q42: Which of the following is NOT a
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