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TEST BANK, CHAPTER 9 BANKING AND MANAGEMENT OF FINANCIAL INSTITUTIONS EXAM QUESTIONS AND CORRECTANSWERS ALREADY GRADEDA+
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---40November 20242024/2025A+
- TEST BANK, CHAPTER 9 BANKING 
AND MANAGEMENT OF FINANCIAL 
INSTITUTIONS EXAM QUESTIONS 
AND CORRECTANSWERS ALREADY 
GRADEDA+ 
Banks hold capital because 
A) they are required to by regulatory authorities. 
B) higher capital increases the returns to the owners. 
C) it increases the likelihood of bankruptcy. 
D) higher capital increases the return on equity. - ANSWER-A) they are required to by 
regulatory authorities. 
Conditions that likely contributed to a credit crunch during the global fi...
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