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Bank A reports an Equity Multiplier (EM) of 10, while bank B reports an EM of 25. Which bank is better prepared to respond against
Bank A reports an Equity Multiplier (EM) of 10, while bank B reports an EM of 25. Which bank is better prepared to respond against large losses on loans? What are the 3 choices for banks to increase the amount of capital relative to assets?
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