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There are several means by which banks are regulated and supervised in order to avoid a bank from exploiting their safety net. Restricting their balance
There are several means by which banks are regulated and supervised in order to avoid a bank from exploiting their safety net. Restricting their balance sheet components is one of them. Which of the following is not one of those restrictions:
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mainain minimum levels of capital
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restrict both grade and quantity of bonds
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less than 10% of assets can be common stock
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size of loans to particular borrows is limited
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