Which of the Following Is True of Regulation

question 114

Multiple Choice

Which of the following is true of regulation?

• A) Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems.
• B) Policy-makers are hesitant to call for new regulations even when it is clear they would help avert future crises.
• C) Mortgage lending and banking have historically been unregulated and therefore regulation in these sectors will be unpopular.
• D) Past regulations have been effective at averting crises, but they are unpopular because they reduce the profitability of the regulated industry.