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A Bank That Is Adequately Capitalized

Question 98

Multiple Choice

A bank that is adequately capitalized:


A) faces no significant regulatory restrictions.
B) cannot accept broker-placed deposits without regulatory approval.
C) has limits on dividends and management fees it is allowed to pay and limits on the maximum asset growth rate among other restrictions.
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.

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