The Following Are Protective Mechanisms That Have Been Developed by Regulators

question 29

Multiple Choice

The following are protective mechanisms that have been developed by regulators to promote the safety and soundness of the banking system except:

• A)encouraging banks to rely more on deposits rather than debt or capital as a cushion against failure
• B)encouraging banks to limit lending to a single customer to no more than 10 per cent of capital
• C)the provision of deposit insurance
• D)the periodic monitoring of banks

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Definitions:

Making a Complaint

The act of expressing dissatisfaction or reporting a problem regarding a service, product, or experience, usually to seek resolution.

Greater Discount

A larger reduction in price offered on goods or services, typically used as a sales promotion strategy to encourage purchasing.

Losing a Client

The process or event where a business or individual loses a customer or client, typically resulting in a loss of revenue and/or relational capital.