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    Bank Management
  4. Exam
    Exam 12: The Effective Use of Capital
  5. Question
    How Does Bank Capital Reduce Bank Risk
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How Does Bank Capital Reduce Bank Risk

Question 23

Question 23

Multiple Choice

How does bank capital reduce bank risk?


A) It provides a cushion for firms to absorb losses.
B) It creates unlimited growth opportunities.
C) It limits access to the financial markets.
D) All of the above.
E) a.and b.

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