Which of the Following Are the Reasons for Having the Government

Multiple Choice

Which of the following are the reasons for having the government set capital standards for financial institutions as opposed to letting the private marketplace set those standards?

A) To preserve public confidence
B) To remove each bank's unique asset risk exposure
C) To limit losses to the federal government arising from deposit insurance claims
D) To preserve public confidence and to limit losses to the federal government arising from deposit insurance claims
E) None of the options is correct.