Capital Requirements for Banks Serve All of the Following Purposes

question 315

Multiple Choice

Capital requirements for banks serve all of the following purposes EXCEPT:

• A)to reduce a bank owner's incentive for excessive risk taking.
• B)to offset the change in incentives caused by deposit insurance.
• C)to put to use the excess of a bank's assets over its deposits and other liabilities.
• D)to reduce deposits.

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