1) To act in the tax payer's interest and low costs to the deposit insurance agency,...

1) To act in the tax payer's interest and low costs to the deposit insurance agency, regulators must Select one:

A. set tight restrictions on holding assets that are too risky.
B. not adopt a stance of regulatory forbearance.
C. impose high capital requirements.
D. all of the above.

2) The main source of funds at savings and loan associations is

Select one:

A. borrowing in the capital market.
B. deposits.
C. equity capital.
D. borrowing in the money market.

Solutions

Expert Solution

1: Correct answer is option D that is "All of the above".
Explanation:
All the options A,B and C are correct.
We can further expand the statement the option B as: not adopt a stance of regulatory forbearance that would allow the insolvent companies to continue their operations.

Part 2:
Option B is correct.
Deposits are the main source of funds at savings and loan association.

jeff jeffy answered 2 years ago

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