Macro-prudential policy-business cycles

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Reference no: EM131103698

One Macro-prudential policy that can counter the systemic risks from the boom/bust finance over the business cycles is?

A. Require the banks to purchase catastrophe insurance for all transactions.

B. Implement pro-cyclical capital requirements on banks.

C. Examine the asset quality of each individual bank.

D. Consolidate the supervision responsibilities into one government agency.

Reference no: EM131103698

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