Requiring Higher Capital Ratios Often Is Proposed as Method to Reduce

question 44

True/False

Requiring higher capital ratios often is proposed as method to reduce the incentive to take excessive risk because the moral-hazard risk-taking incentives are thought to decrease as the amount of net worth increases.

---

Definitions:

Elongation

Middle stage of translation in which additional amino acids specified by the mRNA are added to the growing polypeptide.

Termination

End of translation that occurs when a ribosome reaches a stop codon on the mRNA that it is translating, causing release of the completed protein.

Translation

The process in which cellular ribosomes create proteins, decoding the information contained in messenger RNA.

DNA Replication

The biological process of producing two identical replicas of DNA from one original DNA molecule.