In: Finance
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.
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.