Regulators say that some of the world\'s biggest banks should not be permitted t

Question

Regulators say that some of the world's biggest banks should not be permitted to rely on their own assessment of risk and must hold 40 percent more capital. Source: Financial Times, March 4, 2016 that are required to raise more capital? What are the financial What exactly is the "capita referred to in the news clip? How might raising more capital make financial institutions safer? The because by using more of its own funds and less borrowed funds, a financial 0 A, loans markets and bond markets OB, some of the worlds biggest banks ??. some of the worlds biggest banks and stock markets O D. governments The "capital" referred to in the news clip is O A physical capital O B. human capital O C. stocks and bonds O D. insttutions' own funds O A. can charge a higher price for its bonds O B. increases the value of its stock O c. hreases its gross investment O D. becomes larger O E. decreases its risk of insolvency 0 1) Option D is correct. Inside 2) Option C is correct Point A, B, C, D and E

Explanation / Answer

Question 1:

The financial institutions that are required to raise more capital are __________

Answer:

Option B: Some of the world’s biggest banks

Question 2:

The capital referred to in the news clip is __________

Answer:

Option D: Institutions’ own funds

Question 3

The requirement to raise more capital can make financial institutions safer because by using more of its own funds and less borrowed funds, a financial institution ___________

Answer:

Option E: Decreases its risk of insolvency

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