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8. Which of the following actions would help a bank to boost its equity capital? (A)Using proceeds from paid-off loans to reduce liabilities instead of

8. Which of the following actions would help a bank to boost its equity capital?

  1. (A)Using proceeds from paid-off loans to reduce liabilities instead of making new loans.
  2. (B)Re-allocating assets towards safer items like high-quality government bonds.
  3. (C)Cancelling the payment of dividends to shareholders.
  4. (D)Issuing bonds and using the proceeds to raise the level of working capital.

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