Which of the Following Would Most Likely Reduce the Number

question 31

Multiple Choice

Which of the following would most likely reduce the number of bank failures?

• A)An increase in the number of small banks
• B)Deregulation of banks and other financial institutions
• C)Creating a system of deposit insurance
• D)Encouraging banks to make more risky loans
• E)A higher degree of leveraging

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Definitions:

Injury

Physical harm or damage to a person's body, or harm to one's reputation or emotions in a legal context.

Rescission

The process of unwinding a transaction, returning all parties to their pre-contractual state.

Fraud

The intentional deception or misrepresentation made by a person or entity to gain an unfair advantage or harm another party.

Misrepresentation

The act of giving false or misleading information about a material fact, which can lead another person to act to their detriment or alter their position.