One Justification for Greater Regulation of Banks Than of Non-Bank

question 44

Multiple Choice

One justification for greater regulation of banks than of non-bank financial institutions is the:

• A)lower amounts of capital and higher amounts of risky assets held at banks.
• B)absence of economy-wide repercussions when non-banks fail.
• C)more limited opportunities for excessive risk-taking by non-bank institutions.
• D)existence of government insurance of bank deposits.

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Definitions:

Stirrup

A small, U-shaped bone in the middle ear that plays a key role in transmitting sounds from the outer ear to the inner ear.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is essential for hearing as it converts sound vibrations into neural signals.

Auditory Nerve

The nerve that carries signals from the inner ear to the brain, allowing us to process sounds.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves, aiding in the process of hearing.