Net Regulatory Burden for FIs Is Higher Because Regulators May

question 6

Multiple Choice

Net regulatory burden for FIs is higher because regulators may require the FI to

• A)to hold more capital than what would be held without regulation.
• B)to produce less information than would be produced without regulation.
• C)to hold more debt than what would be held without regulation.
• D)hold fewer reserves than they would without regulation.
• E)All of these.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in cash.

Net Income

The net income of a company once all costs and taxes are deducted from its total revenue.

Short-Term Stock Investments

Investments in stocks that are intended to be held for a short period, typically less than one year, for earning quick profits.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed.