One negative consequence of regulatory competition is:
A)It is expensive
B)Financial institutions are over regulated at a cost to customers
C)Financial institutions often seek out the most lenient regulator
D)It minimizes competition

Question

Quizplus · Accepted Answer

Regulatory competition can lead financial institutions to seek out the most lenient regulator, which can result in a race to the bottom in terms of regulations and standards. This can ultimately harm customers and the stability of the financial system.

One Negative Consequence of Regulatory Competition Is