Some bank regulation limits the types of assets that banks may own.The intent of this regulation is to
A)protect banks from competition.
B)provide banks with a minimum level of profits.
C)limit the level of bank profits.
D)maintain bank safety.
E)All of the above are correct.

Question

Quizplus · Accepted Answer

Bank regulation that limits the types of assets that banks may own is intended to maintain bank safety by preventing banks from taking on excessive risk. The other choices are incorrect because protecting banks from competition and providing them with a minimum level of profits are not the intended purposes of this regulation, and it does not necessarily limit the level of bank profits.

Some Bank Regulation Limits the Types of Assets That Banks