Question: A bank has been told by regulators that it needs to increase its capital to asset ratio. What are some of the actions the bank
A bank has been told by regulators that it needs to increase its capital to asset ratio. What are some of the actions the bank can take to obtain a higher capital to asset ratio? (Mark ALL of the actions below that can help in increasing the ratio.)
Question 26 options:
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Sell bonds and add the funds to reserves.
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Retain less of the earnings.
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Pay out less dividends.
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Issue new equity.
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