The Practice of Keeping High-Risk Assets on a Bank's Books

question 64

Multiple Choice

The practice of keeping high-risk assets on a bank's books while removing low-risk assets with the same capital requirement is know as

• A)competition in laxity.
• B)depositor supervision.
• C)regulatory arbitrage.
• D)a dual banking system.

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Definitions:

Metric Equivalent

A system of measurement that provides conversions between the metric system units and other measurement units.

Liters

A metric unit of volume equal to 1,000 cubic centimeters or approximately 0.26 U.S. gallons.

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A beverage made from roasted and ground beans of the Coffea plant, widely consumed globally for its stimulating effect due to caffeine content.

Juice

A liquid that is naturally contained in fruit and vegetables, often consumed as a beverage.