A General Principle of Regulation Is

question 78

Multiple Choice

A general principle of regulation is:

• A)do not offset the moral hazard problem.
• B)set as few bad precedents as possible.
• C)let banks fail regardless of the effect on the economy.
• D)the need to reduce regulations over time.

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Definitions:

Multiculturalism

The recognition, acceptance, and promotion of multiple cultural traditions within a single jurisdiction, fostering diversity and inclusivity.

Systems

Sets of interrelated components working together toward a common goal, whether in computer science, biology, or organizational theory.

Economic Incentives

Financial motivations designed to encourage or discourage certain behaviors among individuals or organizations.

Rational

Relating to, based on, or capable of reasoning that is coherent and consistent, often used to describe decisions or thought processes.