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.
Answer: A
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.
Answer: A