Regulators Attempt to Reduce the Riskiness of Banks' Asset Portfolios

question 28

Multiple Choice

Regulators attempt to reduce the riskiness of banks' asset portfolios by

• A) limiting the amount of loans in particular categories or to individual borrowers.
• B) prohibiting banks from holding risky assets such as common stocks.
• C) establishing a minimum interest rate floor that banks can earn on certain assets.
• D) doing all of the above.
• E) doing only A and B of the above.

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Definitions:

Industrial Patents

Legal documents granted to inventors or assignees that provide exclusive rights to use, make, and sell an invention for a set period of time.

Sync-Sound Technology

Technology used in filmmaking that synchronizes the audio recording with the motion picture image, allowing for sound and picture to be recorded simultaneously.

Motion Picture Patent Company

An early American film industry trust, formed in 1908, that held patents essential for movie production and sought to control film distribution.

National Board of Censorship

An early form of media regulation in the United States aiming to censor content deemed inappropriate, now known as the National Board of Review.