Net Regulatory Burden for FIs Is Higher Because Regulators May

question 67

Multiple Choice

Net regulatory burden for FIs is higher because regulators may require the FI to

• A)hold more capital than what would be held without regulation.
• B)produce less information than would be produced without regulation.
• C)hold more debt than what would be held without regulation.
• D)hold fewer reserves than they would without regulation.
• E)All of the options.

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Definitions:

Higher-Order Conditioning

A process in classical conditioning by which a stimulus that was previously neutral becomes conditioned by being paired with another conditioned stimulus.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response.

Stimulus Generalization

The psychological phenomenon where a response to a specific stimulus becomes triggered by stimuli that are similar in nature.

Conditioned Response

The learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through classical conditioning.