Using a Strict Market Value Accounting Might Cause Regulators to

Multiple Choice

Using a strict market value accounting might cause regulators to

A) revert to book value accounting in order to determine net worth.
B) close banks too early under prompt corrective action requirements.
C) exempt Dis from prompt corrective action.
D) allow banks to operate without oversight even with negative net worth.
E) suspend regulatory capital requirements during temporary spikes in interest rates.