4. a How are ROA and ROE related? negatively b positively no relationship d ROE is lower than ROA. 5. a. Other things equal, bank managers prefer to have higher leverage b. lower leverage c. zero leverage d. more equity If you were hired as the CEO of a bank, you are supposed to: a. create jobs b. make money c. avoid losses d. create value for shareholders 6 7. Repricing gap model is used to assess banks' a. liquidity risk. b. interest rate risk in the trading book. c. interest rate risk in the banking book. d. credit risk