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…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 15QP

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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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