For a given return on assets, the lower the bank capital is, a) the lower the return for the owners of the bank will be.
b) the higher the return for the owners of the bank will be.
c) the lower the credit risk for the owners of the bank will be.
d) both the lower the return for the owners of the bank will be and the lower the credit risk for the owners of the bank will be of these will happen.

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

You are bearish on telecom and decide to sell short 100 shares at the current market price of $50 per share. a. how much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? b. how high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (input the amount as a positive value. round your answer to 2 decimal places.)

The era of venture capitalists doling out large sums of money to startups is a. just beginning b. on the rise c. over d. fading