If a bank's return on equity remains constant, but the ratio of bank assets to bank capital decreases:
A. the bank must be unprofitable.
B. the bank's return on assets must have increased.
C. the bank's return on assets must have decreased.
D. the bank's assets and capital must have increased by the same percent.
Answer: B
You might also like to view...
The investment function is represented by
A) an inverse relationship between the interest rate and the value of planned investment. B) the direct relationship between the interest rate and the value of planned investment. C) the indirect relationship between taxes and government spending. D) the direct relationship between taxes and government spending.
If supply and demand both decrease, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. higher; higher B. lower; lower C. uncertain; lower D. lower; uncertain
The questions below are based on the table below. Fill in the blank spaces first. 
The Supply of Labor is W = 10 + 3QLHow many laborers will be hired and what will the wage be if both product and labor markets are perfect and the going wage is $18 per worker?
What will be an ideal response?
If firms in a monopolistically competitive industry are operating with economic losses, over time we would see
A) firms alter their advertising rates until they made at least normal profits. B) some firms exiting the industry, causing the market supply curve to shift to the left, raising price. C) some firms exiting the industry, causing the demand curves of the remaining firms to shift to the right. D) the firms working together to increase price and everyone's profitability.