15. If a bank’s return on assets (ROA) is 1%, and its asset-to-equity ratio (equity multiplier) is 10, then the bank’s return on equity (ROE

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15.

If a bank’s return on assets (ROA) is 1%, and its asset-to-equity ratio (equity multiplier) is 10, then the bank’s return on equity (ROE) is

 

Question 15 options:

 

a) 

100%.

 

b) 

5%.

 

c) 

1%.

 

d) 

10%.   

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