Which of the following does bank regulation help prevent or resolve? Select the correct answer below:...

Question

Question

Which of the following does bank regulation help prevent or resolve? Select the correct answer below:...

Which of the following does bank regulation help prevent or resolve?

Select the correct answer below:

A. Bank runs

B. Loss of depositors money

C. Risky behavior by banks

D. All of the above

business economics

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Answer 1

Answer #1

Solution:

The answer is D. All of the above

because bank regulation helps in preventing bank runs. It occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the bank's solvency.

It also helps in preventing the loss of depositors money and also prevents banks from taking any wild risks that could harm in future. Hence the answer is D.

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Answer 2

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