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The Capital Adequacy Requirements Imposed on Banks in 1988

Question 47

Multiple Choice

The capital adequacy requirements imposed on banks in 1988:


A) provided cost incentives for the banks to transfer much of the lending activities of their parent bank to their merchant bank subsidiaries.
B) provided cost incentives for the banks to transfer much of the lending activities of their finance company subsidiaries to the parent bank.
C) strengthened the competitive advantage enjoyed by finance companies.
D) all of the given options.

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