A Bank That Is 'Well-Capitalized

question 90

Multiple Choice

A bank that is 'well-capitalized':

• A)faces no significant regulatory restriction on its expansion.
• B)cannot accept broker placed deposits without regulatory approval.
• C)has limits on dividends and management fees it is allowed to pay and limits on the maximum asset growth rate among other restrictions.
• D)will be placed into conservatorship or receivership if its capital level is not increased within a certain time limit.
• E)None of the options is correct.

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Definitions:

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Generalization

The process by which individuals apply knowledge or behavior learned in one context to different but similar contexts.

Discrimination

Discrimination is the unfair or prejudicial treatment of people based on characteristics such as race, age, sex, or disability instead of individual merit.