Financial regulators set capital requirements for banks. One characteristic about these requirements is:
A. the riskier the asset holdings of a bank, the more capital it will be required to have.
B. the amount of capital required is inversely related to the amount of assets the bank owns.
C. every bank will have to hold the same level.
D. the more branches a bank has, the more capital it must have.
Answer: A
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If the U.S. current account balance is -$500 billion and the capital and financial account balance is +$510 billion
A) the U.S. official settlements account balance is $10 billion. B) the U.S. government's holdings of foreign currency increases by $10 billion. C) foreign investment in the United States is smaller than the U.S. investment abroad. D) U.S. exports are greater than U.S. imports.
In the textbook model of endogenous growth, long-run output growth would increase if there were either a ________ in the saving rate or a ________ in the depreciation rate
A) rise; rise B) rise; fall C) fall; rise D) fall; fall