Which of the Following Is Not a Reason Financial Regulation

question 31

Multiple Choice

Which of the following is not a reason financial regulation and supervision is difficult in real life?

• A) Financial institutions have strong incentives to avoid existing regulations.
• B) Unintended consequences may happen if details in the regulations are not precise.
• C) Regulated firms lobby politicians to lean on regulators to ease the rules.
• D) Financial institutions are not required to follow the rules.

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Definitions:

Conclusion

The statement in a logical argument that follows from the premises.

Major Premise

The first statement in a syllogism, containing the universal principle or general assertion.

Categorical Syllogism

A form of argument consisting of three categorical propositions that together yield a conclusion.

Categorical Propositions

Statements that assert or deny that all, some, or none of a particular class of objects belong to another class of objects.