Regulations in Financial Systems
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Questions and Answers

What is one of the main directions in which financial system rules aim to move?

  • Encourage bank runs
  • Promote moral hazard problems
  • Maximize insider trading opportunities
  • Increase information available to investors (correct)

Which of the following is NOT a measure to ensure the solidity of financial intermediaries?

  • Deposit Insurance
  • Promoting risky assets control (correct)
  • Disclosure of information
  • Limits on competition

Which committee plays a significant role in international banking regulation?

  • International Financial Regulatory Board (IFRB)
  • World Financial Committee (WFC)
  • Global Banking Authority (GBA)
  • Basel Committee on Banking Supervision (BCBS) (correct)

What is a key aspect of the entry process for financial intermediaries as part of banking regulations?

<p>Chartering process (A)</p> Signup and view all the answers

Which factor helps in avoiding bank runs as part of ensuring the solidity of financial intermediaries?

<p>Deposit Insurance (B)</p> Signup and view all the answers

What is the status of the decisions made by the Basel Committee on Banking Supervision (BCBS)?

<p>Generally aligned with by major economies (C)</p> Signup and view all the answers

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