1-35 In an attempt to enhance the net social welfare benefits of the services provided by financial intermediaries,safety and soundness regulation requires a DI to hold a minimum level of cash reserves against deposits.

Question

Quizplus · Accepted Answer

Safety and soundness regulation requires a depository institution (DI) to hold a minimum level of capital, not cash reserves, to ensure stability and protect depositors.

1-35 in an Attempt to Enhance the Net Social Welfare