Which of the Following Is Not a Corrective Action Taken

question 53

Multiple Choice

Which of the following is not a corrective action taken by regulators when a bank is identified as a problem bank?

• A)Regulators may examine such banks frequently and thoroughly.
• B)Regulators may request that a bank boost its capital level or delay its plans to expand.
• C)Regulators can require that additional financial information be periodically updated to allow continued monitoring.
• D)Regulators have the authority to take legal action against a problem bank if the bank does not comply with their suggested remedies.
• E)All of the above are possible corrective actions taken by bank regulators.

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Definitions:

Par Value

The face value of a bond or stock as specified by the corporate charter, which is the minimum amount per share that shareholders will receive in the event of the corporation's liquidation.

Market Rate

The current price or cost of goods, services, or commodities as determined by the market supply and demand.

Maturity

The date on which a financial obligation must be repaid in full or the point at which an investment reaches its full value.

Time Period

A specific duration for which financial or operational activities are measured, analyzed, and reported.