Questions
MCD2170 - T2 - 2025 Pre-class Quiz Week 10
Single choice
Bank's capital includes:
Options
A.a. borrowed funds and accumulated retained profits.
B.b. shareholder's funds and Accumulated retained profits.
C.c. deposits and borrowed funds.
D.d. deposits and Shareholder's funds.
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Step-by-Step Analysis
Here we have a question about what constitutes a bank's capital and we need to assess each option carefully.
Option a: 'borrowed funds and accumulated retained profits.' While retained profits are part of a bank's capital, borrowed funds are liabilities, not capital. Banks finance through a mix of capital and borrowin......Login to view full explanationLog in for full answers
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