20-2 The primary role of capital for an FI is to assure the highest possible return on equity for its shareholders.

Name: 20-2 The primary role of capital for an FI is to assure the highest possible return on equity for its shareholders.
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The primary role of capital for an FI is to provide a buffer against losses and to meet regulatory requirements. While achieving a high return on equity is important for shareholders, it is not the primary role of capital.

20-2 the Primary Role of Capital for an FI Is