The Following Are Protective Mechanisms That Have Been Developed by Regulators

question 69

Multiple Choice

The following are protective mechanisms that have been developed by regulators to promote the safety and soundness of the banking system EXCEPT

• A)encouraging banks to rely more on deposits rather than debt or capital as a cushion against failure.
• B)encouraging banks to limit lending to a single customer to no more than 10% of capital.
• C)the provision of deposit insurance.
• D)the periodic monitoring of banks.
• E)encouraging banks to produce timely accounting statements and reports.

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Definitions:

Individuality

The unique characteristics and qualities that distinguish one person from another.

Confidentiality

The ethical principle or legal right that mandates keeping certain information shared between two parties private and secure.

Life-Threatening

A condition or situation that has the potential to cause death if not immediately addressed or treated.

Trusting Relationships

Bonds between individuals that are built on the mutual confidence in each other's reliability, truth, ability, or strength, essential for personal and professional development.