Multiple Choice
Why do banks maintain a certain level of bank capital?
A) These funds are required to satisfy shareholders in annual statements.
B) These funds are reserved as salary bonuses for top management.
C) These precautionary funds are held against the illiquidity risks of loans and bonds.
D) These are funds to be invested in emerging market economies.
E) These funds are set aside for taxation purposes.
Correct Answer:
Verified
Correct Answer:
Verified
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