Through regulation and supervision, government officials reduce the amount of risk banks can take, lowering their chances
Question:
Through regulation and supervision, government officials reduce the amount of risk banks can take, lowering their chances of failure. Regulators and supervisors:
a. Restrict competition.
b. Restrict the types of assets banks can hold.
c. Require banks to hold minimum levels of capital.
d. Require banks to disclose their fees to customers and their financial indicators to investors.
e. Monitor banks’ compliance with government regulations.
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Related Book For
Money Banking And Financial Markets
ISBN: 9781260226782
6th Edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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