One major aspect of bank regulation is to require banks to keep

Question

Quizplus · Accepted Answer

Requiring banks to keep a minimum amount of capital is a crucial aspect of bank regulation as it ensures that the bank has a financial buffer to absorb losses and continue operating even during economic downturns. This helps prevent bank failures that could have a ripple effect on the overall economy. The other options, such as requiring a given amount of loans or a fixed set of interest rates, are not necessarily effective measures for ensuring a stable banking system.

One Major Aspect of Bank Regulation Is to Require Banks