It is a good idea for macroprudential policies to require countercyclical capital requirements because:

A.

this type of policy increases capital requirements during economic downturns to prevent bank failures.

B.

macroprudential policies with countercyclical capital requirements always help to solve adverse selection problems.

C.

this type of policy reduces lending and helps to mitigate credit bubbles during economic booms.

D.

this type of policy allows for the use of the most appropriate accounting system to evaluate bank capital reserves.