Multiple Choice
The following are protective mechanisms that have been developed by regulators to promote the safety and soundness of the banking system except:
A) encouraging banks to rely more on deposits rather than debt or capital as a cushion against failure
B) encouraging banks to limit lending to a single customer to no more than 10 per cent of capital
C) the provision of deposit insurance
D) the periodic monitoring of banks
Correct Answer:

Verified
Correct Answer:
Verified
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