One Way for Bank Regulators to Assure Depositors That a Bank

question 2

Multiple Choice

One way for bank regulators to assure depositors that a bank is not taking on too much risk is to require the bank to

• A) diversify its loan portfolio.
• B) reduce its equity capital.
• C) reduce the size of its loan portfolio.
• D) do both A and B of the above.
• E) do both B and C of the above.

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Definitions:

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