One Suggested Method of Reducing Excessive Risk-Taking by SIFIs Is

question 45

Multiple Choice

One suggested method of reducing excessive risk-taking by SIFIs is to require them to hold ________ capital when credit is expanding rapidly and ________ capital when credit is contracting.

• A)less;more
• B)more;no
• C)more;less
• D)less;no

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Definitions:

Levy

Imposition of a tax, fee, or fine by a government or regulatory authority.

Consumption

The act of using goods and services to satisfy needs or wants.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good.

Quantity Demanded

Quantity demanded is the amount of a good or service consumers are willing and able to purchase at a specific price level within a given time period.