Which of the Following Is Not a Corrective Action That

question 20

Multiple Choice

Which of the following is not a corrective action that regulators may take when a bank is identified as a problem bank?

• A) examine the bank frequently and thoroughly
• B) request that the bank boost its capital level or delay its plans to expand
• C) require the bank to provide additional financial information that is periodically updated to allow continued monitoring
• D) take legal action against the bank if it does not comply with their suggested remedies
• E) All of the above are possible corrective actions taken by bank regulators.

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Definitions:

Favorable Ratio

A ratio that indicates a positive outcome, often related to financial performance, such as higher revenue or lower expenses compared to previous periods.

Acid-Test Ratio

A financial metric used to evaluate a company's ability to pay off its current liabilities with its quick assets.

Year-End Information

Financial and operational data summarizing a company's performance over the course of a fiscal year, often used for analysis and reporting purposes.

Income Statements

A financial report that shows a company's revenue and expenses, resulting in net income or loss over a specific period.