In the Absence of Regulation,banks Would Probably Hold

question 94

Multiple Choice

In the absence of regulation,banks would probably hold

• A) too much capital, reducing the efficiency of the payments system.
• B) too much capital, reducing the profitability of banks.
• C) too little capital, increasing the return on equity.
• D) none of the above.

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Definitions:

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which can influence behavior and decisions.

External Locus of Control

A belief system where individuals think that their successes or failures result from external factors beyond their control.

Decisions

The process of making choices between alternative courses of action based on preferences, values, and available information.

Locus of Control

An individual's belief system regarding the causes of his or her experiences and the factors to which that person attributes success or failure.