The Following Are Protective Mechanisms That Have Been Developed by Regulators

question 29

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 per cent of capital
• C)the provision of deposit insurance
• D)the periodic monitoring of banks

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Definitions:

P-value

In hypothesis testing, the p-value is the probability of obtaining test results at least as extreme as the observed results, under the assumption that the null hypothesis is correct.

Populations

The entire group of individuals or items of interest in a statistical study.

Critical Value

A point on the scale of a statistical distribution that corresponds to a specified level of significance for hypothesis testing.

Null Hypothesis

A hypothesis in statistical analysis that suggests no significant difference or effect; it's the default position that there is no association between two measured phenomena.