Banks with greater capital can do all of the following except: A) borrow at lower rates. B) make larger loans. C) expand faster through acquisitions. D) expand faster through internal growth E) Banks with greater capital can do all of the above.

Question

Quizplus · Accepted Answer

Banks with greater capital can borrow at lower rates, make larger loans, expand faster through acquisitions, and expand faster through internal growth. This is because having more capital indicates to investors and regulators that the bank is financially stable and has a lower risk of defaulting on loans, making it more attractive to investors and lenders. This allows the bank to access cheaper funding sources, make larger loans, and potentially acquire other banks or expand its own operations.

Banks with Greater Capital Can Do All of the Following