What is the name of the policy designed to limit the risks across the financial sector by focusing on improving 'prudential' standards of operation that enhance stability and reduce risk?
A) governance
B) compliance
C) systemic policy
D) macroprudential policy

Question

Quizplus · Accepted Answer

Macroprudential policy is designed to limit the risks across the financial sector by focusing on improving 'prudential' standards of operation that enhance stability and reduce risk. It is different from traditional monetary policy and focuses on systemic risks rather than individual institutions. The objective of macroprudential policy is to reduce the likelihood and severity of financial crises.

What Is the Name of the Policy Designed to Limit