Policies that limit the amount of deposits held by one bank, increase capital requirements as bank assets increase, or restrict the number of branches a bank may operate serve primarily as policies to reduce the of financial institutions.
A)size scope
B)insolvency
C)illiquidity

Question

Quizplus · Accepted Answer

These policies are designed to limit the size and scope of financial institutions, preventing them from becoming too large or complex, which can pose systemic risks to the financial system.

Policies That Limit the Amount of Deposits Held by One