Pearson eText Economics of Money, Banking and Financial Markets, The, Business School Edition -- Instant Access (Pearson+)
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Chapter 9, Problem 8Q
To determine

The three things that a bank would be able to do to meet its capital necessities by $1 million.

Concept Introduction:

The satisfactory capital balance is vital for a bank. Bank regularly tries to keep up the adequate balance in the capital. A satisfactory level of capital prevents the occurrence of the bank crisis. The capital structure that is apt for a bank, guarantees positive returns to those holding equities in the bank.

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