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For a Given Return on Assets,the Lower the Bank Capital

Question 76

Multiple Choice

For a given return on assets,the lower the bank capital is,


A) the lower the return for the owners of the bank will be.
B) the higher the return for the owners of the bank will be.
C) the lower the credit risk for the owners of the bank will be.
D) both A and C of the above will happen.

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