1. Banks can increase their return on equity by a. increasing interest rates on loans; a decrease b. increasing interest rates on loans; an increase c. increasing interest rates on loans; no change d. decreasing their capital; a decrease which results in in risk.

1. Banks can increase their return on equity by a. increasing interest rates on loans; a decrease b. increasing interest rates on loans; an increase c. increasing interest rates on loans; no change d. decreasing their capital; a decrease which results in in risk.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 37P: Imagine that a local water company issued 10,000 ten-year bond at an interest rate of 6. You are...

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Question

1. Banks can increase their return on equity by
a. increasing interest rates on loans; a decrease
b. increasing interest rates on loans; an increase
c. increasing interest rates on loans; no change
d. decreasing their capital; a decrease
which results in
in risk.
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lo vinng
cour
bes bloa

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