Holding large amounts of bank capital helps prevent bank failures because the capital A) makes bank...

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Holding large amounts of bank capital helps prevent bank failures because the capital A) makes bank loans easier to sell. B) makes bank securities easier to sell. C) results in higher income for the bank. D) can absorb the losses resulting from bad loans. Banks hold capital because A) higher capital increases the returns to the owners. B) they are required to by regulatory authorities. C) higher capital increases the return on equity. D) it increases the likelihood of bankruptcy. Holding large amounts of bank capital helps prevent bank failures because the capital A) makes bank loans easier to sell. B) makes bank securities easier to sell. C) results in higher income for the bank. D) can absorb the losses resulting from bad loans. Banks hold capital because A) higher capital increases the returns to the owners. B) they are required to by regulatory authorities. C) higher capital increases the return on equity. D) it increases the likelihood of bankruptcy.

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