What is the equity multiplier for a bank where equity is equal to 12% of total assets?
A) 83.33
B) 1.12
C) 0.88
D) 12.00
E) 8.33

Name: What is the equity multiplier for a bank where equity is equal to 12% of total assets? A) 83.33 B) 1.12 C) 0.88 D) 12.00 E) 8.33
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Question

Quizplus · Accepted Answer

The equity multiplier is calculated as the ratio of total assets to total equity. If equity is 12% of total assets, then the equity multiplier is 1 / 0.12 = 8.33.

What Is the Equity Multiplier for a Bank Where Equity