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If a bank increases its assets by adding one dollar to capital then

 

[removed]A.

leverage stays constant since neither of these accounts are related to leverage.

[removed]B.

leverage increases.

[removed]C.

leverage stays constant as both are raised an equal amount.

[removed]D.

leverage decreases.

[removed]E.

The answer can not be determined from the information in the question.

 

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