Changes in ____ are a factor affecting the value of a commercial bank over which the bank has some control.
A) economic growth
B) the risk-free interest rate
C) industry conditions
D) management abilities
E) none of the above

Question

Quizplus · Accepted Answer

Management abilities are the factor that affects the value of a commercial bank over which the bank has some control. The quality of management can affect the bank's operational efficiency, asset quality, profitability, and risk management practices. Therefore, it directly influences the bank's overall financial performance, which ultimately affects its value. Other factors mentioned in the options are external variables that a commercial bank may not have control over.

Changes in ____ Are a Factor Affecting the Value of a Commercial