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Which of the following should a bank do if it finds that it holds too much capital? A. increase dividends to reduce cash and reduce

Which of the following should a bank do if it finds that it holds too much capital?

A. increase dividends to reduce cash and reduce retained earnings.

B. issue stocks

C. bank can never hold too much capital as there is no downside to it.

D. increase dividends to reduce cash and increase retained earnings.

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