Do disclosure requirements help limit excessive risk

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Reference no: EM131620460

Do disclosure requirements help limit excessive risk taking by? banks?

A. No. Until more regulation? occurs, it is unlikely that the quality of information currently available will limit excessive risk taking.

B. No. Even with disclosure? requirements, creditors and depositors are unlikely to take advantage of the information? available, so disclosure requirements are likely to have no effect on excessive risk taking.

C. Yes. Disclosure requirements better enable depositors to evaluate and monitor financial institutions and thus act as a deterrent to excessive risk taking.

D. Uncertain. It depends on how much information financial institutions are willing to disclose.

Reference no: EM131620460

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