The Following Are Protective Mechanisms That Have Been Developed by Regulators

question 63

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% of capital.
• C)the provision of deposit insurance.
• D)the periodic monitoring of banks.

---

Definitions:

Forecasting Technique

A methodology or set of methods used to predict future aspects of a business or operation, such as sales, trends, or inventory requirements.

Marketing Information

Data collected, analyzed, and used by businesses to make informed decisions about market trends, customer behavior, and competitive strategies.

Secondary Data

Information that has been collected previously by others and is available for use in new research or analysis.

Primary Data

Information collected directly for a specific research purpose or project, often through surveys, interviews, or experiments.