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According to the text, why do investment banks tend to overcompensate in their compliance spending?
  • a)
    To gain a competitive advantage in the market.
  • b)
    To avoid regulatory fines and penalties.
  • c)
    To achieve higher Return on Equity (ROE).
  • d)
    To invest in innovative customer-facing portals.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
According to the text, why do investment banks tend to overcompensate ...
The text suggests that investment banks tend to overcompensate in their compliance spending because they want to avoid regulatory fines and penalties. In the face of complex and evolving regulations, banks often err on the side of caution by allocating excessive funds to compliance. This approach is driven by the desire to ensure full compliance with regulations and avoid potential legal consequences, which could include fines and penalties.
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According to the text, why do investment banks tend to overcompensate in their compliance spending?a)To gain a competitive advantage in the market.b)To avoid regulatory fines and penalties.c)To achieve higher Return on Equity (ROE).d)To invest in innovative customer-facing portals.Correct answer is option 'B'. Can you explain this answer?
Question Description
According to the text, why do investment banks tend to overcompensate in their compliance spending?a)To gain a competitive advantage in the market.b)To avoid regulatory fines and penalties.c)To achieve higher Return on Equity (ROE).d)To invest in innovative customer-facing portals.Correct answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about According to the text, why do investment banks tend to overcompensate in their compliance spending?a)To gain a competitive advantage in the market.b)To avoid regulatory fines and penalties.c)To achieve higher Return on Equity (ROE).d)To invest in innovative customer-facing portals.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for According to the text, why do investment banks tend to overcompensate in their compliance spending?a)To gain a competitive advantage in the market.b)To avoid regulatory fines and penalties.c)To achieve higher Return on Equity (ROE).d)To invest in innovative customer-facing portals.Correct answer is option 'B'. Can you explain this answer?.
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