Requiring banks to use less leveraging is equivalent to:

The correct answer to this is:

Requiring banks to use less leveraging is equivalent to “requiring a higher level of bank net worth”.

Banks use borrowed money in an effort to increase profits and this is called leveraging. The excessive use of high leveraging usually leads to the instability of the bank.  When the bank uses less leveraging, the bank has higher net worth since the money are used not used for profit-gaining activities.

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