Recall the Application about how policymakers use stress tests to protect the financial system to answer the following question(s).
-According to this Application, if a bank does not pass the test, the Fed can

Question

Quizplus · Accepted Answer

If a bank does not pass the stress test, the Fed can prevent the bank from paying out dividends to its shareholders (option A) and make the bank raise additional capital from the financial markets (option B). Therefore, both options A and B are correct, making option D the best choice. The Fed does not force the bank to close (option C) unless the situation is severe enough to warrant it.

Recall the Application About How Policymakers Use Stress Tests to Protect