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:

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language.

Morphology

The study of the forms and structures of things, in linguistics focusing on the formation and structure of words, and in biology the structure and form of organisms.

Phonemes

The tiniest sound element in a language that can differentiate one word from another.

Morphemes

The smallest units of language that carry meaning, including prefixes, suffixes, and root words.