The Volcker Rule Restricts Excessive Risk Taking by Commercial Banks

question 78

Multiple Choice

The Volcker rule restricts excessive risk taking by commercial banks by:

• A) prohibiting banks from making certain kinds of speculative investments.
• B) increasing the amount of capital banks must hold.
• C) decreasing the deposit insurance coverage of depositors in commercial banks.
• D) limiting the compensation that bank executives can be paid.

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Definitions:

Ductus Arteriosus

A fetal blood vessel that connects the pulmonary artery to the aortic arch, allowing blood to bypass the lungs in utero.

Lactation

The process of producing and secreting milk from the mammary glands of mammals following childbirth, providing essential nutrients to the newborn.

Estrogen

A group of steroid hormones responsible for the development and regulation of the female reproductive system and secondary sex characteristics.

Progesterone

Steroid hormone secreted by the corpus luteum and one of the hormones secreted by the placenta.