5
QuizMultiple Choice

Bank Financial Statements and Performance

Question 5 • (AG Q4) Financial Literacy: 25-26 (JRush)

Common equity is a capital conversation buffer for banks that could also be considered a/an _____.

Answer
A
emergency fund to prevent a run on the banks
B
lending account for their best customers
C
restriction on lending at certain times
D
way to absorb a certain amount of loss in a down market
Common equity is a capital conversation buffer…