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:

Immediate

Refers to something happening or acting without delay.

Delayed

Refers to something that has been postponed or hindered, causing it to occur later than planned or expected.

Theory

A coherent group of propositions formulated to explain a group of facts or phenomena, often serving as the basis for further investigation.

Research

The systematic investigation into and study of materials, sources, etc., in order to establish facts and reach new conclusions.