Suppose a Bank Is Operating with a Leverage Ratio of 10.A

Multiple Choice

Suppose a bank is operating with a leverage ratio of 10.A 6 percent increase in the value of assets

A) will reduce liabilities by 6 percent.
B) will result in a 60 percent increase in owner's equity.
C) will result in a 60 percent decrease in owner's equity.
D) will reduce liabilities by 10 percent.