Banks Are Subject to Which of the Following Regulations

question 2

Multiple Choice

Banks are subject to which of the following regulations?

• A) Their exchange settlement account must have a positive balance at the end of each day.
• B) They can have any level of liquidity.
• C) Their capital adequacy requirements are not essential.
• D) They don't have to have an exchange settlement account with the RBA.

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Definitions:

Planned Obsolescence

A strategy used by manufacturers to intentionally design products with a limited useful life, encouraging consumers to purchase replacements more frequently.

Consumers

Individuals or entities that purchase goods or services for personal use, not for manufacture or resale, playing a central role in economies by driving demand.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood by others in terms of that individual's own culture.

Ethical Values

Fundamental beliefs about what is right, wrong, good, or bad in terms of human behavior and interactions.