The Concept of Prompt Corrective Action Refers to the Requirement

Multiple Choice

The concept of prompt corrective action refers to the requirement

A) that bank managers must address problems in the loan portfolio when they are first identified.
B) that regulators must take specific actions when bank capital levels fall outside the well-capitalized category.
C) that a receiver must be appointed when a bank's book value of capital to assets falls below 2 percent.
D) that regulators must take specific actions when bank capital levels fall outside the well-capitalized category and that a receiver must be appointed when a bank's book value of capital to assets falls below 2 percent.
E) that all of the options are correct.