Which of the following are regulations that are designed to reduce the moral haz

Question

Which of the following are regulations that are designed to reduce the moral hazard created by deposit insurance? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box 7 U.S. Regulators can restrict competition so that banks are not under as much pressure to engage in risky investments. U.S. banks' bond holdings from a single issuer cannot exceed 25 percent of their capital U.S. banks cannot make loans to single borrowers that exceed 50 percent of their capital. ? US. banks' bond holdings from a single issuer cannot be less than 40 percent of their capital. grade.

Explanation / Answer

Ans Regulators can restrict competition so that banks are not under as much pressure to engage in risky investments.

All other options are incorrect

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