Consider a bank that has a RoA of 1.2 percent and a RoE of 8 percent. This RoA is a [Select] indicator for the bank, and the ✓ [Select] negative positive (When Thay a positive indicator, mmean a sign of good bank health; a "negative indicator" is a sign of poor bank health.) RoE is indicator for the bank.
Consider a bank that has a RoA of 1.2 percent and a RoE of 8 percent. This RoA is a [Select] indicator for the bank, and the ✓ [Select] negative positive (When Thay a positive indicator, mmean a sign of good bank health; a "negative indicator" is a sign of poor bank health.) RoE is indicator for the bank.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider a bank that has a RoA of 1.2 percent and a RoE of 8 percent.
This RoA is a [Select]
indicator for the bank, and the
✓ [Select]
negative
positive
(When I say a positive indicator, mean a sign of good bank health; a
"negative indicator" is a sign of poor bank health.)
RoE is
indicator for the bank.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe2e236e9-355f-4e15-8f9b-f94b120cf235%2Ffaa26c74-3c4f-43f4-84c8-07adbe144f5d%2F9s668xh_processed.png&w=3840&q=75)
Transcribed Image Text:Consider a bank that has a RoA of 1.2 percent and a RoE of 8 percent.
This RoA is a [Select]
indicator for the bank, and the
✓ [Select]
negative
positive
(When I say a positive indicator, mean a sign of good bank health; a
"negative indicator" is a sign of poor bank health.)
RoE is
indicator for the bank.
![Consider a bank that has a RoA of 1.2 percent and a RoE of 8 percent.
✓ [Select ]
negative
positive
This RoA is
RoE is a [ s
indicator for the bank, and the
dicator for the bank.
(When I say a "positive indicator," I mean a sign of good bank health; a
"negative indicator" is a sign of poor bank health.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe2e236e9-355f-4e15-8f9b-f94b120cf235%2Ffaa26c74-3c4f-43f4-84c8-07adbe144f5d%2Fc796fer_processed.png&w=3840&q=75)
Transcribed Image Text:Consider a bank that has a RoA of 1.2 percent and a RoE of 8 percent.
✓ [Select ]
negative
positive
This RoA is
RoE is a [ s
indicator for the bank, and the
dicator for the bank.
(When I say a "positive indicator," I mean a sign of good bank health; a
"negative indicator" is a sign of poor bank health.)
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