For a bank,more capital means more _____________,and it also means ___________ returns when asset values are rising.

Name: For a bank,more capital means more _____________,and it also means ___________ returns when asset values are rising.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

More capital means more safety for a bank, as it provides a buffer against losses. However, it also means lower returns when asset values are rising because the bank is using more of its own funds rather than leveraging borrowed funds to generate returns.

For a Bank,more Capital Means More _____________,And It Also Means