Statement A: Capital acts as regulator of growth. If bank is trying to grow too fast, shortage of capital will stop the bank from growing because of Capital adequacy regulations Statement B: Capital provides funds for growth. The more capital a bank has the more it will be able to expand and diversify Select one: a. Dont agree with both A and B O b.Agree with both A and B O C Agree with B but not with A d. Agree with A but not with B

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Statement A: Capital acts as regulator of growth. If bank is trying to grow too fast, shortage of
capital will stop the bank from growing because of Capital adequacy regulations
Statement B: Capital provides funds for growth. The more capital a bank has the more it will be
able to expand and diversify
Select one:
a. Dont agree with both A and B
O b.Agree with both A and B
O C Agree with B but not with A
d. Agree with A but not with B
Transcribed Image Text:Statement A: Capital acts as regulator of growth. If bank is trying to grow too fast, shortage of capital will stop the bank from growing because of Capital adequacy regulations Statement B: Capital provides funds for growth. The more capital a bank has the more it will be able to expand and diversify Select one: a. Dont agree with both A and B O b.Agree with both A and B O C Agree with B but not with A d. Agree with A but not with B
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