Please answer by stating true or false and give a valid explanation.

1. Base your answer to the following question on this document.

https://www.fdic.gov/regulations/safety/manual/section2-1.pdf

Bank capital performs several very important functions. It absorbs losses, promote public confidence, helps restrict excessive asset growth, and provides protection to depositors and the deposit insurance funds.

a. True/False

2. Base your answer to the following question on this document. https://www.fdic.gov/regulations/safety/manual/section2-1.pdf Capital allows institutions to continue operating as going concerns during periods when operating losses or other adverse financial results are experienced.

a. True/False

3. Base your answer to the following question on this document. https://www.fdic.gov/regulations/safety/manual/section2-1.pdf Capital provides a measure of assurance to the public that an institution will continue to provide financial services even when losses have been incurred, thereby helping to maintain confidence in the banking system and minimize liquidity concerns.

a. True/False

4. Base your answer to the following question on this document. https://www.federalreserve.gov/newsevents/press/bcreg/bcreg20160629al.pdf If the Federal Reserve does not approve the quantitative or qualitative capital plans of a bank holding company that bank holding companys ability to distribute capital to shareholders is constrained.

a. True/False