In Order to Reduce Risk and Increase the Safety of Financial

question 83

Multiple Choice

In order to reduce risk and increase the safety of financial institutions, commercial banks and other depository institutions are prohibited from ________.

• A) owning corporate bonds
• B) making real estate loans
• C) making personal loans
• D) owning common stock

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Definitions:

Predictability

The characteristic of a process, principle, or system that enables it to be known or declared in advance, especially through the application of scientific or logical techniques.

Probability

A measure of the likelihood that an event will occur, often quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Liberty

The state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

State

An organized political community living under a government; can also refer to the condition or mode of being.