Regulators Attempt to Reduce the Riskiness of Banks' Asset Portfolios

question 50

Multiple Choice

Regulators attempt to reduce the riskiness of banks' asset portfolios by

• A)limiting the amount of loans in particular categories or to individual borrowers.
• B)encouraging banks to hold risky assets such as common stocks.
• C)establishing a minimum interest rate floor that banks can earn on certain assets.
• D)requiring collateral for all loans.

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Definitions:

Defragmenting

The process of reorganizing the data on a disk drive to put fragmented files back together, improving the system's efficiency and speed.

Optimizing

The process of making something as effective, perfect, or functional as possible, often used in contexts like software development, business strategies, and manufacturing.

Hard Drive

A data storage device used for storing and retrieving digital information, typically using magnetic storage.

Arrow Keys

Keys on a keyboard used to move the cursor or navigate around a digital environment in specified directions.