All of the Following Are Reasons to Regulate Depository Institutions

question 67

Multiple Choice

All of the following are reasons to regulate depository institutions except

• A) to promote safety and soundness.
• B) to affect the structure of banking.
• C) to make sure banks' earnings are competitive with other financial institutions.
• D) to protect the interest of consumers.
• E) None of the above.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reflecting its decrease in value over time.

Net Income

The remaining profit of a corporation once every expense, tax, and additional cost is deducted from the overall revenue.

Amortization Expense

The gradual write-off of the cost of an intangible asset over its useful life.

Equity-Method

An accounting technique used to record investments in affiliate companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's profits or losses.