7. A bank can increase its ROE by:

1. Paying high dividends to its shareholders to increase their return
2. Managing what sources of funding should be used
3. Competing with other banks by lowering the pricing of services and rely on higher volume
4. All of the above

8. Equity multiplier is:

a. The employment of financial leverage to raise net earnings for the stockholders

b. The return earned on the stockholders investment

c. A major component of the banks income statement

d. A measure to control overall operating efficiency

9. Government deregulations is referred to as:

1. A loosening of government control and regulations
2. Increasing government control
3. Lowering market interest rates
4. Reintroducing previous regulations