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1. In general, banks capital ratios have increased over the past 100 years. a. true b. false 2. Why do regulators prefer higher capital requirements?

1. In general, banks capital ratios have increased over the past 100 years.

a. true b. false

2. Why do regulators prefer higher capital requirements? a. Decreases bank profitability. b. Justifies the existence of regulatory agencies. c. Better protects the Deposit Insurance Fund (FDIC). d. Bank leverage increases.

e. Improves the quality of bank assets.

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