- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 10. Economics of Regulation
- Subject 6. Regulatory Tools
CFA Practice Question
Stress testing, as a regulatory tool, involves:
A. Avoiding any scenarios that might cause financial instability.
B. Analyzing the impact of adverse economic conditions on financial institutions.
C. Ignoring potential risks and vulnerabilities.
D. Allowing financial institutions to operate without scrutiny.
Correct Answer: B
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