Capital adequacy requirements are an example of competition regulation.

Capital adequacy requirements are an example of competition regulation.

Requirements Weekly Assignment

Students must submit three true-false questions prior to each class based on the assigned reading for the week.

· You must include answers and supporting rationale

· Each question must come from a different part of the assigned reading

· The template of true-false question please check the following examples which are two parts, almost 100 words for each question, therefore three true- false questions will be almost 300 words in total.

 

True false question examples here (Two parts in each question)

Part 1. True or False:

Disclosure requirements are a regulatory response to the information asymmetry issue between financial product providers and consumers.

True. Required disclosures help consumers understand the nature of the products they are considering and therefore make better informed decisions based on the price and risk of services provided.

Part 2. True-False Questions for Responses (supporting rationale)

1. Capital adequacy requirements are an example of competition regulation.

2. Shadow banking systems tend to occur in financial systems that have minimal regulations.

3. Limiting bank deposits per person that are protected by the Federal Deposit Insurance Corporation to a relatively modest amount (e.g. $250,000) serves to reduce the moral hazard of the program.