Choose the Correct Statement

question 6

Multiple Choice

Choose the correct statement:

• A)The countercyclical capital buffer has a microeconomic focus and aims to ensure that financial system capital requirements are sufficient given the political environment in which DIs operate.
• B)The countercyclical capital buffer has a political focus and aims to ensure that financial system capital requirements are sufficient given the economic environment in which DIs operate.
• C)The countercyclical capital buffer has a macroeconomic focus and aims to ensure that financial system capital requirements are sufficient given the macro-financial environment in which DIs operate.
• D)None of the listed options are correct.

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Definitions:

Mutual Agency

A principle in partnership businesses where each partner has the power to bind the partnership in agreements with third parties.