A commercial bank has capital of $5000 and a leverage ratio of 10. If the value of
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A commercial bank has capital of $5000 and a leverage ratio of 10. If the value of the bank's assets increases by 5%, then its capital has _____ to ______.
a. increased / $7,500
b. increased / $5,500
c. decreased / $4,500
d. decreased / $4,000
e. decreased / $2,500
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