1. The relationship between shares of Amazon.com and cash is:
a. only cash is a means of payment, but both are units of account.
b. cash is a means of payment, but both are stores of value.
c. shares of Amazon.com and cash are both liabilities.
d. shares of Amazon.com is an asset, but cash is a liability.
2. Suppose that a bank's return on equity is unchanged, but the ratio of the bank’s assets to capital has decreased. It must then be that case that the:
a. bank has become less profitable.
b. bank has become more highly leveraged.
c. bank's return on assets has decreased.
d. bank's return on assets has increased.