Refer to Exhibit 12-4

Multiple Choice

Refer to Exhibit 12-4.If Bank XYZ's assets rise by 4 percent and its liabilities rise by 2 percent,by what percentage would its bank capital change compared to its original bank capital (i.e.compared to the value originally in blank (A) ) ,ceteris paribus?

A) 2 percent
B) 3 percent
C) 9.1 percent
D) 6 percent
E) There is not enough information provided to answer this question.