As a bank's assets become less risky, its
A) risk-based capital ratio rises.
B) risk-based capital ratio falls.
C) leverage ratio rises.
D) leverage ratio falls.
B
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Which of the following ideas exemplifies the Industrial Revolution? a. Machines increase productivity
b. Artisans produce the highest-quality products. c. Communication is critical to business success. d. Outsourcing in production reduces the overhead expenses of a business.
Suppose the current exchange rate between the U.S. dollar and the Mexican peso is $0.12 = 1 peso. Furthermore, suppose the price level in the United States rises 25 percent at a time when the Mexican price level is stable. According to the purchasing power parity theory, what will be the new equilibrium exchange rate?
A) $0.15 = 1 peso B) $0.09 = 1 peso C) $0.13 = 1 peso D) $0.08 = 1 peso
Using Figure 2 above, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE3 might be:
A. taxes increase. B. interest rates increase. C. wealth level increases. D. domestic income increases.
In ________ markets, large oligopolistic firms end up behaving like perfectly competitive firms.
A. monopoly B. contestable C. blocked D. monopolistically competitive