When regulators examine the financial system's risk incurring activities it is engaging in ________ supervision.
A) microprudential
B) macroprudential
C) both microprudential and macroprudential
D) neither microprudential nor macroprudential

Question

Quizplus · Accepted Answer

When regulators examine the financial system's risk incurring activities, they are engaging in macroprudential supervision. Microprudential supervision involves supervising individual firms to ensure their solvency and protection of consumer interests, while macroprudential supervision focuses on the stability of the financial system as a whole.

When Regulators Examine the Financial System's Risk Incurring Activities It