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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Definitions:

State-run Lotteries

Lotteries operated by state governments in which participants buy tickets for a chance to win monetary prizes, often contributing to public funding.

Education Sector

A segment of society focused on the provision, development, and delivery of educational services and institutions.

Tax Incidence

The degree to which a tax falls on a particular person or group.

Business Property

Assets owned by a business, including both real estate and personal property used for business operations.