The function of adequate bank capital for a commercial bank is to:
A. meet bank reserve requirements
B. provide funds for real estate loans
C. provide a cushion against credit risk and interest rate risk
D. support the purchase of bank buildings and equipment
Answer:C
The function of adequate bank capital for a commercial bank is to:
A. meet bank reserve requirements B. provide funds for real estate loans C. provide a cushion against credit risk and interest rate risk D. support the purchase of bank buildings and equipment