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Capitals are funds contributed by the owners of a financial institution. Raising and retaining sufficient capital to protect the interests of customers, employees, owners, and

Capitals are funds contributed by the owners of a financial institution. Raising and retaining sufficient capital to protect the interests of customers, employees, owners, and the general public is tough. (i) Explain two crucial role capital plays in the management and viability of a financial firm? (2 marks) (ii) The principal forms of bank capital include common and preferred stock. Identify at least three other forms of bank capital. (3 marks)

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