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Financial Regulation  Use an example of either the Official Cash Rate, the C...

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Financial Regulation 

Use an example of either the Official Cash Rate, the Capital

Adequacy Ratio or IPO requirements, to fully describe how

increasing

financial regulation impacts …

a)     

the cost of banking/financial services

b)     

the profitability of banks

c)     

the cost of banking that consumers/investors

face

(6 marks) 

Given the example of regulation change that you have used

above, explain the presence or absence of any trade-off between banking costs

and safer banks that consumers/investors face. 

(2 marks) 

(6 + 2 = 8 marks) 

Apply the specific theory of Foundations of Finance to

answer the following questions only. Curriculum from any other unit, AI answers

or internet answers are easily recognisable and will earn 0 marks.

Enter text only in the answer box below. Do not enter images, pics or links as Moodle may freeze, preventing test progress.

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