The amount of capital that banks are required to hold depends on the:

Question

Quizplus · Accepted Answer

The amount of capital that banks are required to hold is based on the riskiness of the bank's assets. This is because banks are required to hold enough capital to cover potential losses on those assets. The riskier an asset is, the more capital the bank is required to hold to cover its potential losses. The other options may affect the overall stability of the banking system, but they do not directly impact the required level of capital.

The Amount of Capital That Banks Are Required to Hold