Regulatory Capital Arbitrage Is a Means of

Regulatory capital arbitrage is a means of

A) using borrowed funds to increase the returns that can be earned with a given amount of capital.
B) specifying the amount of capital that financial institutions should hold based on the riskiness of their different assets.
C) determining mortgage rates for sub-prime borrowers.
D) changing the composition of assets in such a way as to lower the overall amount of capital a financial institution holds for a given level of assets.