Ques31: Which of the following statements is/are FALSE about capital of FI?

Select one or more:

a. The primary role of capital for an FI is to assure the highest possible return on equity for its shareholders.

b. The book value of bank equity is the present value of assets minus the present value of liabilities.

c. One function of capital is to provide funding for real assets, such as branches and technology that are necessary to provide financial services.

d. Market value of equity is more appropriate than book value of equity at reflecting changes in the credit risk and interest rate risk of an FI.