Financial Markets and Institutions mcq set 7

241. Statutory regulation is likely to create larger compliance costs than self-regulation because:A. self-regulation does not involve lawyers and the courts.B. consumers are better able to assess risk under self-regulation.C. statutory regulators are often over-cautious.D. statutory regulation is controlled by consumers. AnswerC. statutory regulators are often over-cautious. 242. Moral hazard caused by regulation can only…

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