📊 Financial Markets and Institutions
Q. Moral hazard caused by regulation can only be removed from financial transactions if:
  • (A) regulations are regularly revised to keep pace with the changing circumstances of the market.
  • (B) the regulations prevent agency capture.
  • (C) all regulation is self-regulation.
  • (D) participants in the finance industry do not feel protected by the regulations.
💬 Discuss
✅ Correct Answer: (D) participants in the finance industry do not feel protected by the regulations.

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