Bank regulation covers reserve requirements, capital requirements and restrictions on:
ATypes of stationery
BTypes of advertising
CTypes of appointment
DTypes of investments
Answer & Solution
Correct answer: D. Types of investments
1. Regulation falls into a number of named categories.
2. Two of them govern how much a bank must hold back.
3. The third restricts the types of investments banks may make.
4. Banks are not permitted to invest in assets perceived as too risky.
_Source: OpenStax Principles of Macroeconomics 3e (CC BY 4.0), Ch 15 'Monetary Policy and Bank Regulation', sections 15.1-15.5_
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