In Order to Reduce the Likelihood of Excessive Leverage in the Banking

question 77

Multiple Choice

In order to reduce the likelihood of excessive leverage in the banking system,governments have traditionally

• A) imposed capital requirements on commercial banks.
• B) imposed capital requirement on investment banks.
• C) imposed capital requirements on both commercial and investment banks.
• D) imposed asset requirements on all banks.

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Definitions:

Great Britain

An island located off the northwest coast of Europe comprising England, Scotland, and Wales.

Voluntarism

Refers to the principle or system that relies on voluntary action, especially in the context of social or economic matters, rather than compulsory measures enforced by the government.

Institutionalized system

A well-established and widely accepted system that operates according to formal rules and norms within a particular context.

Employee voice

The ways in which workers can express their opinions, concerns, and suggestions regarding workplace decisions and policies.