The benefit of stricter capital requirements for shadow banks is _____, while the cost is _____.
A) the end of risk-taking behavior; the development of more profitable opportunities
B) increased monitoring of risk-taking behavior; higher executive compensation
C) enhancing financial stability; impeding financial intermediation
D) lower inflation; higher unemployment
Correct Answer:
Verified
Q92: The Volcker rule restricts excessive risk taking
Q93: A key obstacle facing regulators who want
Q94: All of the following are examples of
Q95: The purpose of the Financial Services Oversight
Q96: The potential problem faced by the rest
Q98: Two policies that are intended to make
Q99: Proponents of restricting the size of financial
Q100: Deposit insurance is an example of _
Q101: What are the problems which hinder any
Q102: "A fire-sale can make illiquid institutions insolvent."
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents