Bank regulation exists because public authorities are convinced that a.the balance between public interest and safety does not affect profitability, and should be removed from the hands of managers. b.the balance between bank safety and public interest can best be obtained by reliance on the market. c.the balance between bank profitability and public interest cannot be handled with legislation, but can be handled with regulation. d.the balance between bank profitability and safety cannot be left to profit-maximizing managers.

The banking regulations are exists in order to maintain the financial stability.

Answered: Bank regulation exists because public…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Bank regulation exists because public authorities are convinced that

	a.	the balance between public interest and safety does not affect profitability, and should be removed from the hands of managers.
	b.	the balance between bank safety and public interest can best be obtained by reliance on the market.
	c.	the balance between bank profitability and public interest cannot be handled with legislation, but can be handled with regulation.
	d.	the balance between bank profitability and safety cannot be left to profit-maximizing managers.

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