Question

5. CAMELS rating system Aa Aa Suppose that, according to the CAMELS rating system, Forever Golden Banks earnings is rated a 5, whereas Forever Mutual Bank is rated a 1. This means that bank supervisors are more concerned about the earnings of Bank supervisors evaluate a banks earnings by: O Examining how the banks profitability is affected by changes in market interest rates O Assessing the banks returns over time O Assessing the banks ability to get cash when it needs it
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Answer #1

First question is incomplete

Second question is answered below

2.

Correct option: Assessing the bank's returns over time

Reason: Returns received by banks overtime represent the earnings made by banks and thus they are important while calculating bank earnings.

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