Net profit after taxes per dollar of assets is a basic measure of bank profitability called
A) return on assets.
B) return on capital.
C) return on equity.
D) return on investment.
A
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The inefficiencies associated with dead capital can
A) lead to increased consumption. B) increase the amount of investment as businesses look for more technologically advanced capital. C) lead to more economic freedom as firms try to get rid of the inefficient capital. D) reduce the rate of return on investment.
Answer the following statement(s) true (T) or false (F)
1. The demand curve for a monopolistic firm is the same as the demand curve for its market. 2. A monopolist’s marginal revenue always less than the price. 3. A monopolist will intentionally operate on the inelastic portion of its demand curve. 4. If marginal costs exceed marginal revenues, profits drop. 5. Multiplying average total cost by the output level gives the total cost.