Bank want the bank to be highly leveraged

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Reference no: EM131557138

According to the textbook's chapter: "We can think of a bank's liabilities as the sources of its funds, and we can think of a bank's assets as the uses of its funds." Explain what this statement means. 

Why might the managers of a bank want the bank to be highly leveraged?

Why might the bank's shareholders want the bank to be less highly leveraged?

450 words.

Reference no: EM131557138

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