In Order to Reduce the Likelihood of Excessive Leverage in the Banking

question 77

Multiple Choice

In order to reduce the likelihood of excessive leverage in the banking system,governments have traditionally

• A) imposed capital requirements on commercial banks.
• B) imposed capital requirement on investment banks.
• C) imposed capital requirements on both commercial and investment banks.
• D) imposed asset requirements on all banks.

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Definitions:

Cost Stability

The state of maintaining consistent and predictable expenses in business operations or economic activities.

Suppliers

Entities that provide products or services to other entities, usually within the context of a business or economic system.

Task Delegation

The assignment of responsibilities and authority from a manager or supervisor to an employee or team member to carry out specific activities.

Future Environments

Potential conditions and scenarios that individuals, organizations, or societies may face in the future.