1) Net profit after taxes per dollar of assets is a basic measure of bank profitability called
A) return on assets.
B) return on capital.
C) return on equity.
D) return on investment.
2) Net profit after taxes per dollar of equity capital is a basic measure of bank profitability called
A) return on assets.
B) return on capital.
C) return on equity.
D) return on investment.
3) The amount of assets per dollar of equity capital is called the
A) asset ratio.
B) equity ratio.
C) equity multiplier.
D) asset multiplier.
4) For a given return on assets, the lower is bank capital,
A) the lower is the return for the owners of the bank.
B) the higher is the return for the owners of the bank.
C) the lower is the credit risk for the owners of the bank.
D) the lower the possibility of bank failure.