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Thank you! 1. Banks are not allowed to underwrite credit default swaps. Question 8 options: True False 2. When a bank holds a lower level

Thank you!

1.

Banks are not allowed to underwrite credit default swaps.

Question 8 options:

True

False

2.

When a bank holds a lower level of capital, a given dollar level of profits represents a lower return on equity.

Question 9 options:

True
False

3.

In general, banks would prefer to maintain a high amount of capital to boost their return on equity ratio, yet regulators have argued that banks need only a sufficient amount of capital to absorb potential operating losses.

Question 10 options:

True
False

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