What is the approximate leverage ratio of this bank?
A) 4.80
B) 1.21
C) 5.80
D) 0.83
E) Not enough information is given.

Name: What is the approximate leverage ratio of this bank? A) 4.80 B) 1.21 C) 5.80 D) 0.83 E) Not enough information is given.
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Question

Quizplus · Accepted Answer

The leverage ratio is calculated by dividing total assets by total equity. In this case, total assets are $60 billion and total equity is $12.5 billion, so the leverage ratio is $60 billion / $12.5 billion = 4.80.

What Is the Approximate Leverage Ratio of This Bank