Some Bank Regulation Limits the Types of Assets That Banks

question 163

Multiple Choice

Some bank regulation limits the types of assets that banks may own.The intent of this regulation is to

• A)protect banks from competition.
• B)provide banks with a minimum level of profits.
• C)limit the level of bank profits.
• D)maintain bank safety.
• E)All of the above are correct.

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Definitions:

Group Polarization

The phenomenon where discussions within a group lead to an exaggeration of the group's initial leanings, potentially resulting in more extreme positions.

Distress

A negative emotional state that arises when an individual perceives a situation as threatening or beyond their coping capabilities, often leading to discomfort or pain.

External Attributions

The process of attributing the cause of a person's behavior to external factors, circumstances, or the environment.

Diffusion of Responsibility

A psychological phenomenon where individuals in a group are less likely to take action or feel a sense of responsibility due to the presence of others.