Victory Bank reports an EM (equity multiplier) of 30 while Batovi Bank reports an EM equal to 18.
The equity capital as a percentage of assets for Victory Bank is
3.33% and for Batovi Bank is
5.56%. (Round your response to two decimal places.)
Which bank is better prepared to respond against large losses on loans?

Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.