A Regulatory Capture in the Financial System Occurs When

question 42

Multiple Choice

A regulatory capture in the financial system occurs when

• A)government regulators own stocks of financial institutions.
• B)the government and financial institutions become hostile to each other.
• C)government regulators and financial institutions take actions to benefit each other.
• D)the government makes loans directly to borrowers without going through the financial system.
• E)the general public bails out a financial institution.

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