Banks That Fail to Comply with Regulations,including the Failure to Maintain

question 39

Multiple Choice

Banks that fail to comply with regulations,including the failure to maintain an adequate capital adequacy ratio,face

• A)higher costs.
• B)lower costs.
• C)mergers and expansion of services.
• D)incarceration of officers.

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Definitions:

Increase in Demand

A situation where there is a rise in the quantity of a product or service that consumers are willing and able to buy at given prices.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers over a certain period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period of time.

Increase in Demand

A shift of the demand curve to the right, indicating that consumers are willing and able to purchase more of a good or service at every price.