What is the explanation for the fact that many bank depositors are NOT concerned about the
Financial leverage of the bank and do not require a higher rate of interest as bank risk increases?
A) Bank risk does not depend on leverage.
B) The depositors are insured by FDIC.
C) There is an interest rate ceiling on deposits.
D) Depositors are not concerned about risk because they assume that regulators monitor bank risk.
Correct Answer:
Verified
Q51: Historical evidence in banking has indicated that:
A)
Q52: Under the current risk-based capital requirement, total
Q53: Tier 1 capital does NOT include which
Q54: When a distressed bank situation arises, which
Q55: Increased use of debt, holding all else
Q57: From the viewpoint of bank shareholders, what
Q58: Under what condition(s) would equity financing be
Q59: Total capital equals:
A) Tier 1 capital
B) Tier
Q60: Which of the following factor(s) can affect
Q61: Which of the following statements is true
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents