Question: Macmillan Learning Indicate whether each item below decribes microprudential or macroprudential regulation. Microprudential regulation Focuses on common exposures across institutions Focuses on consumer-e.g., despositor or

Macmillan Learning Indicate whether each item below decribes microprudential or macroprudential regulation. Microprudential regulation Focuses on common exposures across institutions Focuses on consumer-e.g., despositor or investor-protection Functions as an economic stabilization tool Answer Bank Macroprudential regulation Limits the risk of failure of individual financial institutions Limits the risk of system-wide collapse

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