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Various government agencies regulate and oversee what banks do. There are many regulations on what banks are allowed to do (ex: limits on what assets banks can hold, how much capital they need to hold, what it takes to start your own bank etc.).

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Various government agencies regulate and oversee what banks do. There are many regulations on what banks are allowed to do (ex: limits on what assets banks can hold, how much capital they need to hold, what it takes to start your own bank etc.).
Paragraph 1: Describe ONE such regulation. (Many are described in the video (PPs) on Regulations) Find one regulation that looks interesting to you and describe it briefly.
Paragraph 2: Explain how this regulation can reduce Asymmetric Information or the consequences of AI. (The point here is: WHY do we have regulations? How does the particular regulation you have described help?)
Sources: You can find information in the video (and Powerpoints) about regulations posted under Week 8. You want to use class material. In addition, you will find more in the book, and feel free to look up more info in other places.

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