Ace the AFP Exam 2026 – Boost Your Financial Wizardry!

Question: 1 / 400

What is NOT a primary responsibility of bank regulators?

Implementing safeguards against systemic risk

Monitoring credit risk

Ensuring depositors have investment opportunities

The primary responsibility of bank regulators is to ensure the stability and integrity of the banking system. This includes implementing safeguards against systemic risk, monitoring credit risk to prevent excessive lending practices that could lead to bank failures, and placing restrictions on banks' actions to maintain financial discipline and protect consumers.

Ensuring depositors have investment opportunities falls outside the regulatory scope. Regulators primarily focus on the safety and soundness of the banking institutions and ensuring that they operate within the established laws and regulations. While regulators may provide an environment that allows for investment opportunities, it is not their role to directly ensure that depositors have these opportunities. Instead, their focus is on protecting depositors' funds and maintaining confidence in the financial system.

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Placing restrictions on banks' actions

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