Question

If a bank needs to raise the amount of capital relative to assets, a bank manager might choose to

A) buy back bank stock.
B) pay higher dividends.
C) reduce the bank's assets by making fewer loans.
D) sell securities the bank owns and put the funds into the reserve account.

Answer 1

C) reduce the bank's assets by making fewer loans.

Step-by-step explanation:

loans to customers are assets and the type of asset they are would depend on whether they are repayable within a year or not. If is repayable withina year they are current asset . And giving out fewer loan will lead reduce it assets.