Policies That Limit the Amount of Deposits Held by One

question 40

Multiple Choice

Policies that limit the amount of deposits held by one bank, increase capital requirements as bank assets increase, or restrict the number of branches a bank may operate serve primarily as policies to reduce the of financial institutions.

• A)size scope
• B)insolvency
• C)illiquidity

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Definitions:

Loose Associations

A thought disorder characterized by a disorganized thinking process, evident when someone jumps from one idea to another with little logical connection.

Tangential

Diverging from the previous topic or path without reaching a definite goal or conclusion.

Poverty

A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.

Liability Concerns

Issues or considerations regarding legal responsibilities and the potential for being subject to lawsuits or claims.