Using a Strict Market Value Accounting Might Cause Regulators to

question 43

Multiple Choice

Using a strict market value accounting might cause regulators to

• A)revert to book value accounting in order to determine net worth.
• B)close banks too early under prompt corrective action requirements.
• C)exempt Dis from prompt corrective action.
• D)allow banks to operate without oversight even with negative net worth.
• E)suspend regulatory capital requirements during temporary spikes in interest rates.

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