A Bank That Is 'Critically Undercapitalized

Multiple Choice

A bank that is 'critically undercapitalized':

A) faces no significant regulatory restrictions.
B) can only grant loan to highly leveraged borrowers.
C) cannot avoid seizure in all circumstances.
D) will be placed into conservatorship or receivership if its capital level is not increased within a certain time limit.
E) None of the options is correct.