Question 7 10 pts Regulatory forbearance refers to a policy of foreclosing real estate properties in the event on non-payments of mortgages. strict regulation of banks, closing them down as soon as they are insolvent. allowing insolvent banks to continue to operate. Question 8 10 pts Customer deposits are classified on a Di's balance sheet as liabilities, because the Dl must meet reserve requirements on customer deposits. liabilities, because Dls are required to serve depositors. assets, because customers view deposits as assets. liabilities, because the Dl uses deposits as a source of funds. assets, because the Dl uses deposit funds to earn profits