The amount of capital that banks are required to hold depends on the:
A)amount of deposits held at a bank.
B)riskiness of the bank's assets.
C)reserve requirements for deposits set by the Bank of Canada.
D)level of deposit insurance coverage.

Question

Quizplus · Accepted Answer

Banks are required to hold capital based on the riskiness of their assets to ensure they can absorb potential losses and remain solvent.

The Amount of Capital That Banks Are Required to Hold