Answer this section by choosing the correct response(s) recognising there may be more than one correct answer in each question.

Question 3 2.5 pts Which of the following statement(s) are NOT correct? Macroprudential policy may involve counter-cyclical capital buffers requiring banks to hold additional equity during times of rapid credit growth, and reversing the process when the credit cycle is turning down Macroprudential policy is designed to ensure the safety of individual financial institutions. Monetary policy is a blunt tool for addressing financial stability risks that can stem from asset cycles, and macroprudential policy may be an inefficient tool to try and manage economic and credit cycles too closely. Counter-cyclical capital buffers requiring banks to hold additional equity during times of rapid credit growth are likely to raise the cost of lending. None of the answers