The Practice of Keeping High-Risk Assets on a Bank's Books

question 28

Multiple Choice

The practice of keeping high-risk assets on a bank's books while removing low-risk assets with the same capital requirement is known as

• A)competition in laxity.
• B)depositor supervision.
• C)regulatory arbitrage.
• D)a dual banking system.

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Definitions:

Alkene

A hydrocarbon containing at least one carbon-carbon double bond, characterized by the prefix 'ene'.

E or Z Label

Descriptors used to specify the configuration of double bond substituents in geometric isomers, based on the Cahn-Ingold-Prelog priority rules.

Alkene

Hydrocarbons containing at least one carbon-to-carbon double bond, part of the unsaturated compounds.

Hydrocarbon Molecule

An organic compound consisting entirely of hydrogen and carbon atoms.