Many Agree That Macro Prudential Tools Are the Right Instruments

question 12

Multiple Choice

Many agree that macro prudential tools are the right instruments to deal with bubbles, credit booms, or dangerous behaviour in the financial system. These are:

• A) rules that regulate trading activities in the financial markets.
• B) rules that are aimed directly at employees and firms.
• C) rules that regulate trading activities in the foreign exchange markets.
• D) rules that protect the rights of consumers.
• E) rules that are aimed directly at borrowers, lenders, and financial institutions.

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Definitions:

Pro Forma Analysis

A method of financial forecasting that projects future business performance based on presumed events or conditions.

Financial Structure

The mix of a company's liabilities and equity, including short-term and long-term debt, used to finance its operations and growth.

Marshaling Resources

involves organizing, deploying, and managing resources effectively to achieve specific goals or objectives.

Marketing Programs

Coordinated strategies and efforts to promote and sell products or services, including advertising, promotions, sales, and public relations activities.