If a bank finds that its roe is too low because it

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7. If a bank finds that its ROE is too low because it has too much bank capital, what can it do to raise its ROE?
acquiring new funds and then seeking out new loan business or purchasing more securities with these new funds. 8. If a bank is falling short of meeting its capital requirements by $1 million, what three things can it do to rectify the situation?
9. Why do equity holders care more about ROE than about ROA?
10. If a bank doubles the amount of its capital and ROA stays constant, what will happen to ROE?
11. What are the benefits and costs for a bank when it decides to increase the amount of its bank capital?
12. Why is being nosy a desirable trait for a banker?

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