1. Each of the following is a function of capital EXCEPT
funding the branch and other real investments to provide financial services.
protecting the insurance fund and the taxpayers.
assuring the highest possible return on equity for the shareholders.
protecting uninsured depositors in the event of insolvency and liquidation.
absorbing losses in a manner that allows the FI to continue as a going concern.
2. Regulatory-defined capital and required leverage ratios are based in whole or in part on
market value accounting concepts.
book value accounting concepts.
the net worth concept.
the economic meaning of capital.
None of the above.