The Prudent Person Rule

The prudent person rule:

A) Limits the amount of borrowing a financial institution can do to a fixed percentage of liabilities.
B) Limits the amount of lending a financial institution can do to a fixed percentage of liabilities.
C) Sets the minimum quality of security an institution can buy based on that which an informed and careful investor would do.
D) Sets the maximum quality security an institution can sell based on that which an informed careful investor would do.
E) None of the above.