The Volcker Rule Restricts Excessive Risk Taking by Commercial Banks

question 78

Multiple Choice

The Volcker rule restricts excessive risk taking by commercial banks by:

• A) prohibiting banks from making certain kinds of speculative investments.
• B) increasing the amount of capital banks must hold.
• C) decreasing the deposit insurance coverage of depositors in commercial banks.
• D) limiting the compensation that bank executives can be paid.

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Definitions:

Motivational Interviewing

A counseling approach that seeks to engage a person's intrinsic motivation to change behavior by exploring and resolving ambivalence.

Behavior Change

The process by which individuals modify their actions, reactions, or behaviors to achieve a desired outcome, often in the context of personal development or therapeutic intervention.

Ambivalence

The coexistence of opposing attitudes or feelings toward a person, object, or idea, leading to uncertainty or difficulty in decision-making.

Evidence-based Treatments

Treatments that have been demonstrated to be effective through rigorous scientific research and experimentation.