Question by Help: Economic Questions please help me?
1) All other things being equal among the banks below, which bank is the least likely to become insolvent?
a) Bank D with assets of $ 400 million and liabilities of $ 310 million
b) Bank C with assets of $ 200 million and liabilities of $ 120 million
c) Bank A with assets of $ 100 million and liabilities of $ 80 million
d) Bank E with assets of $ 100 million and liabilities of $ 60 million
e) Bank B with assets of $ 100 million and liabilities of $ 70 million
2) _______ capital specifies the amount of capital financial institutions should hold based on the riskiness of their assets.
a) Securitization-based
b) Risk- based
c) Leverage-based
d) Regulatory
3) Rising savings rates in emerging countries in the period 2000-2008 are associated with both falling and rising mortgage interest rates in the United States.
a) True
b) False
Best answer:
Answer by Aleconomixt
a) Bank D with assets of $ 400 million and liabilities of $ 310 million
b) Risk- based
a) True
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