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Question
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% of capital.
C. the provision of deposit insurance.
D. the periodic monitoring of banks.
E. encouraging banks to produce timely accounting statements and reports.
Answer
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