If a Bank's Management Uses "The Discipline of the Financial

Multiple Choice

If a bank's management uses "the discipline of the financial marketplace" to gauge its liquidity position,one of the indicators of this market test of adequacy of a bank's liquidity position is:

A) the bank's return on equity capital.
B) the volume of bank stock outstanding.
C) the bank's return on assets.
D) the size of risk premiums on CDs the bank issues.
E) None of the options is correct.