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Bank regulation exists to maintain solvency by avoiding excessive:
ARank
BRate
CRisk
DRent
Answer & Solution
Correct answer: C. Risk
1. Reserve and capital requirements both restrain banks.
2. So do limits on the investments they may hold.
3. The aim is to avoid excessive risk.
_Source: OpenStax Principles of Economics 3e, Chapter 28, Monetary Policy and Bank Regulation._
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