For banks that have insufficient capital, which of the following is not a typical operating strategy to achieve capital adequacy?

For banks that have insufficient capital, which of the following is not a typical operating strategy to achieve capital adequacy?


a.)Limit asset growth

b.)Shrink the bank

c.)Increase the dollar amount of commercial loans outstanding

d.)Shift more bank assets into lower risk categories.

e.)Reprice assets to reflect greater equity support



Answer: C


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