Banks do not want to hold too much capital because
A) they do not bear fully the costs of bank failures.
B) higher returns on equity are earned when bank capital is smaller, all else equal.
C) higher capital levels attract the scrutiny of regulators.
D) all of the above.
E) only A and B of the above.
E
Business
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Brislin Products has a new product going on the market next year. The following data are projections for production and sales:
Variable costs $250,000 Fixed costs $450,000 ROI 14% Investment $2,000,000 Sales 200,000 units What is the target selling price per unit? a) $3.50 b) $3.65 c) $4.90 d) $2.65
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What are the implications of findings regardingvarious types of constraint-tolerating investingfor setting an investment policy for corporatebond portfolios?
What will be an ideal response?
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