19-73 Bank Risk Taking Can Be Controlled by Increasing

question 42

Multiple Choice

19-73 Bank risk taking can be controlled by increasing

• A)stockholder discipline by charging stockholders a surcharge.
• B)stockholder discipline by setting risk adjusted deposit insurance premiums.
• C)depositor discipline by increasing the ceiling for deposit insurance coverage.
• D)regulatory discipline by increasing the budgets of the regulatory agencies.
• E)depositor discipline by expanding the doctrine of "too big to fail."

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Definitions:

Control Chart

A statistical tool used to monitor, control, and improve the quality of processes by identifying any variations.

Horizontal Lines

Lines that run parallel to the horizon or ground level, often used in charts, graphs, and design to denote stability or a baseline.

Standard Error

An estimate of the standard deviation of the sampling distribution of a statistic, often used to measure the accuracy of sample means.

Sample Proportion

The ratio of the number of times an event occurs to the total number of trials or times the activity is performed.