Which of the Following Is an Effect of Repeated Rounds

question 15

Multiple Choice

Which of the following is an effect of repeated rounds of deregulation in the banking industry?

• A) Deregulation has enabled technical innovations in financial instruments.
• B) Deregulation has restricted the scope of banking to lending and accepting deposits.
• C) Deregulation reduced the level of risk-taking in the banking sector.
• D) Deregulation has limited the growth of the banking sector.

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Definitions:

Accumulated Depreciation

The aggregate depreciation cost that has been accounted for a particular asset since its first operational use.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life for accounting purposes, reflecting wear and tear.

Salvage Value

The predicted value that an asset retains at the end of its service period.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a fixed asset evenly over its useful life, assuming a constant rate of depreciation each year.