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(T/F) Risk-based capital results are not designed to prevent insolvency.

1 Answer

3 votes

Final answer:

No, risk-based capital results are designed to prevent insolvency.

Step-by-step explanation:

No, this statement is false. Risk-based capital results are designed to prevent insolvency. Risk-based capital is a regulatory framework that sets minimum capital requirements for financial institutions based on their risk profile.

It helps ensure that banks and other financial institutions have enough capital to absorb potential losses and remain financially stable.

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User Mychael
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