A bank's return on equity (ROE) is calculated by:
A. dividing the banks liabilities by the bank's capital.
B. dividing the bank's net profit after taxes by the sum of the bank's assets and its liabilities.
C. taking the bank's assets plus the net profit after taxes and dividing this sum by the bank's capital.
D. dividing the bank's net profit after taxes by the bank's capital.
Answer: D
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The United States possesses a large amount of human capital. As a result of this fact, in the United States there is a
A) large amount of machinery and equipment. B) large number of people and a great deal of land. C) highly skilled and educated labor force. D) large number of kind and generous humans. E) large amount of machinery (capital) that is run by people (humans).
Which of the following defines total profit?
a. average revenue minus average cost b. marginal cost times output c. marginal revenue minus marginal cost d. total revenue minus total cost e. average cost divided by output
Marginal propensity to consume is the percentage of your extra disposable income that you decide to ______.
a. use to buy goods and services b. save in an interest bearing account c. invest in shares of stock d. allocate to food and other necessities
Suppose an efficient market has been operating with regard to stock in a particular company, and that company announces that its profits were up 50% from the previous period. However, the stock price was unchanged after getting the news on a day when all of the other stocks are barely moving. This is
A. absolutely illogical. B. at least potentially consistent with the efficient market hypothesis because investors may have been anticipating a 25% gains. C. at least potentially consistent with the efficient market hypothesis because investors may have been anticipating a 75% gains. D. at least potentially consistent with the efficient market hypothesis because investors may have been anticipating those 50% gains.