Using a Strict Market Value Accounting Might Cause Regulators to

question 43

Multiple Choice

Using a strict market value accounting might cause regulators to

• A)revert to book value accounting in order to determine net worth.
• B)close banks too early under prompt corrective action requirements.
• C)exempt Dis from prompt corrective action.
• D)allow banks to operate without oversight even with negative net worth.
• E)suspend regulatory capital requirements during temporary spikes in interest rates.

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Definitions:

Stimulus Detection Reflex

An automatic response to identifying and reacting to changes in the environment.

Sustain Their Attention

The ability to maintain focus or concentration on a task or activity over an extended period of time without becoming distracted.

Visual Display

Pertains to any form of presentation that conveys information through visual means, such as screens, signs, or charts.

Motor Skills

Abilities that involve the use of muscles to perform movements, usually categorized into fine (small movements, like writing) and gross (larger movements, like walking) motor skills.