Banks and other financial institutions are required by federal and state regulatory agencies to meet minimum capital requirements.

Question

Quizplus · Accepted Answer

This statement is true. Regulatory agencies such as the Federal Reserve and the FDIC require banks and financial institutions to maintain a minimum level of capital as a buffer against unexpected losses and to ensure stability in the financial system. The specific capital requirements vary depending on the type and size of the institution.

Banks and Other Financial Institutions Are Required by Federal and State