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In Reference to Capital Requirements

Question 54

Multiple Choice

In reference to capital requirements,


A) bank capital adequacy refers to the amount of equity capital a bank holds as reserves against impaired loans.
B) bank capital adequacy refers to the amount of debt capital a bank holds as reserves against risky assets to reduce the probability of bank failure.
C) most bank regulators agree with the doctrine of "less is more".
D) none of the above

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