Which of the Following Refers to the Regulators' Policy of Allowing

question 106

Multiple Choice

Which of the following refers to the regulators' policy of allowing an FI to continue operating even when its capital funds are fully depleted?

• A)Capital forbearance.
• B)Prompt corrective action.
• C)Risk-based deposit insurance.
• D)Too-big-to-fail.
• E)Regulatory oversight.

---

Definitions:

Legal Relationships

The connections and obligations among individuals, organizations, and governments under the rule of law.

Concrete Examples

Specific instances or situations that illustrate a general concept, principle, or process in a clear and understandable way.

Ethics

Moral principles that govern a person's behavior or the conducting of an activity, often fundamental to business practices.

Laws

Established rules that are enforceable by a governing body, intended to regulate behaviors and maintain order within a society.