Banks in the U.S. face rules against lending too large a fraction of their assets to a single private customer or to a single foreign government borrower. This is to mitigate the risk of the bank's assets being concentrated on a single borrower and to prevent potential losses in case of default.

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Banks in the U.S

Question 78

Multiple Choice

Banks in the U.S.

A) face rules against lending too large a fraction of their assets to a single private customer only.
B) face rules against lending too large a fraction of their assets to a single private customer or to a single foreign government borrower.
C) face rules against lending too large a fraction of their assets to a single foreign government borrower only.
D) face rules against lending to too many foreign organizations and corporations.
E) face rules against lending to other banks.

Correct Answer: