The Regulatory Flexibility Act Requires That Whenever a New Regulation

question 67

Multiple Choice

The Regulatory Flexibility Act requires that whenever a new regulation will have a significant impact on a substantial number of small businesses,the issuing agency must do all of the following EXCEPT

• A)measure the cost that the rule will impose on small businesses.
• B)consider less burdensome alternatives.
• C)conduct a regulatory flexibility analysis.
• D)adjust the rule to the satisfaction of the regulated businesses.

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Definitions:

Fed

The Federal Reserve System, the central banking system of the United States, which regulates banks, manages the country's money supply, and aims to ensure economic stability.

U.S. Government Securities

Instruments for raising funds issued by the Treasury Department of the United States to support the federal government's expenditures.

Deposits

Deposits refer to the funds that customers place into their bank accounts, which can include savings, checking, and other types of accounts.

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserve and not lend out.