Numbers in ($ Millions)
Item	Bank X	Bank Y
Total Assets	818583	678840
operating income	3909	4548
operating expenses	2659.5	2599.5
Interest income on loans	17868	14785.5
Interest expense on customer deposits	9943.5	6766.5
Deposit and short term funding	446547	537693
Loans	364833	399987
Derivatives	1054.5	7761

1. Based on the financial information above, Bank X is outperforming Bank Y in the cost to asset ratio.

Select one:

True

False

2. Both Internal Capital Generation Rate (ICGR) and Asset Growth Model (AGM) are used to calculate asset growth rate which can be supported by a given amount of internally generated capital only.

Select one:

True

False

3.

Monash bank has the following data for 2018($4,872,000 net income, $283,200,000 total assets, 21,400,000 Equities). XYZ bank has the following data for 2019 ($5,073,600 net income, $313,200,000total assets, 21,600,000 Equities).

If Monash bank shows an increase in the Leverage Multiplier between 2018 and 2019, which of the following statements is correct.

A.There is no enough information to decide accurately whether the increase in the leverage multiplier incorporates more credit or capital risk.

B.The increase in the leverage multiplier between 2018 and 2019 is because the bank in 2019 is taking aggressive policy in lending that will incorporates future credit risk

C.None of the other listed options is correct

D.The increase in the leverage multiplier is because the bank is incorporating more insolvency risk in 2019 because of the decrease in its capital.