Microprudential Supervision Does All of the Following Except

question 76

Multiple Choice

Microprudential supervision does all of the following except

• A) checking capital ratios of a bank.
• B) checking a bank's compliance with disclosure requirements.
• C) assessing the riskiness of an individual bank's activities.
• D) focusing on financial system liquidity.

---

Definitions:

Positive Earnings

When a company’s income, excluding losses and expenses, is more than zero indicating profitability.

Convertible Bonds

Convertible bonds are types of bonds that can be converted into a predetermined number of shares of the issuing company's stock at certain times during the bonds' life, usually at the discretion of the bondholder.

Warrants

Securities that provide the holder the right to purchase the company's stock at a specified price before the expiry date.