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Regulators Attempt to Reduce the Riskiness of Banks' Asset Portfolios

Question 5

Multiple Choice
Regulators attempt to reduce the riskiness of banks' asset portfolios by

Regulators attempt to reduce the riskiness of banks' asset portfolios by


A) limiting the amount of loans in particular categories or to individual borrowers.
B) prohibiting banks from holding risky assets such as common stocks.
C) establishing a minimum interest rate floor that banks can earn on certain assets.
D) doing all of the above.
E) doing only A and B of the above.

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