One Reason That Financial Regulations Restrict the Assets That Banks

question 13

Multiple Choice

One reason that financial regulations restrict the assets that banks can own is to:

• A) combat the moral hazard that government safety nets provide.
• B) limit the growth rate of banks.
• C) prevent banks from being too profitable.
• D) keep banks from spending lavishly on perks for executives.

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Definitions:

Policy Capturing Method

A research technique used to determine the attributes most influential in decision making by analyzing responses to a set of hypothetical scenarios.

Job Evaluation Method

A systematic process for determining the relative worth of jobs within an organization to establish fair compensation.

Job Descriptions

Documents that outline the responsibilities, duties, qualifications, and requirements of a specific role within an organization.

Ontario Pay Equity Act

Legislation in Ontario, Canada, aimed at eliminating gender wage gaps by ensuring that female-dominated job classes are paid at least equally to male-dominated classes performing work of equal value.