If a bank has a leverage ratio of 0.1 and a return on capital of 2%, what is its return on equity?
A) 0) 2%
B) 2) 1%
C) 5%
D) 20%
Correct Answer:
Verified
Q47: If you have a checking account at
Q56: Excess reserves equal
A)total reserves less required reserves.
B)required
Q61: The difference between the interest a bank
Q66: Describe the three ways that banks normally
Q68: If you deposit a $50 check in
Q71: Moral hazard can contribute to high bank
Q71: Banks have responded to new regulations resulting
Q75: In order to reduce the likelihood of
Q76: A bank's revenue comes from all of
Q79: If a bank's ratio of assets to
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