Which of the Following Statements Is/are Correct

question 3

Multiple Choice

Which of the following statements is/are correct?

• A)Higher capital requirements often result in a higher cost of capital for banks.
• B)Small banks have greater access to the equity markets than large banks.
• C)Higher capital requirements encourage small banks to consolidate into larger banks.
• D)All of the above are correct.
• E)Only a.and c.are correct.

---

Definitions:

Unemployment

The situation in which individuals who are capable of working and are actively seeking work are unable to find employment.

U.S. Monetary Policy

The Federal Reserve's actions to regulate the nation's money supply and interest rates to achieve macroeconomic objectives like controlling inflation.

Inflation Rate

The inflation rate is the percentage increase in the general level of prices for goods and services over a period of time.

Money Supply Growth Rate

The rate at which the total amount of money in circulation or in existence in a country grows.