Question: How would the public react to a lower equity-to-debt ratio of universal banks? The public may feel more confident about this bank because shareholders have
How would the public react to a lower equity-to-debt ratio of universal banks?
| The public may feel more confident about this bank because shareholders have a lower stake in the bank profit. | ||
| The public may feel more confident about this bank because it shows the banks larger capacity to absorb operation loss. | ||
| The public may perceive it as a signal that banks are likely to invest in assets with high future returns. | ||
| None of the above is true. |
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