The Practice of Keeping High-Risk Assets on a Bank's Books

question 28

Multiple Choice

The practice of keeping high-risk assets on a bank's books while removing low-risk assets with the same capital requirement is known as

• A)competition in laxity.
• B)depositor supervision.
• C)regulatory arbitrage.
• D)a dual banking system.

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Definitions:

Squirming Movements

Early, uncoordinated movements of young infants, often observed as wriggling or twitching motions.

Jabbing

A quick or sudden punch or thrust.

Pregnancy

A biological condition characterized by the development of one or more offspring, known as an embryo or fetus, inside the uterus of a female.

Ninth Month

The final month of human pregnancy, during which significant fetal development concludes and preparations for birth intensify.