Suppose that a bank initially has a leverage ratio of 8 to 1. If this bank increases its capital by $1 million and its assets by $10 million, then the bank's:
A. leverage and risk increases.
B. risk increases and its leverage decreases.
C. leverage decreases and its liabilities increase.
D. liabilities decrease and its leverage increases.
Answer: A
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Division of labor allows people to do tasks for which they have greater natural ability
a. True b. False
Economists use the equation ?TC/?q to calculate ______.
a. total product b. marginal product c. marginal cost d. average cost
If a firm produces nothing, then its:
A. fixed costs equal zero. B. variable costs equal zero. C. total costs equal zero. D. All of these are true.
A price support may be pictured by
A) shifting the demand curve to the right by the amount of the government purchase. B) shifting the demand curve to the left by the amount of the government purchase. C) shifting the supply curve to the right by the amount of the government purchase. D) shifting the supply curve to the left by the amount of the government purchase. E) drawing a horizontal line below equilibrium price at the supported price.