One of the lessons learned from the 2008 financial crisis was that:
A)banks had been overregulated.
B)the Federal Deposit Insurance Corporation was ineffective.
C)banking regulation was too narrow; before the crisis, shadow banks were not subject to the same regulation as depository institutions.
D)financial crises are usually very short, and recovery from them is relatively quick and easy.

Question

Quizplus · Accepted Answer

The 2008 financial crisis exposed the weakness in the regulatory oversight of financial institutions, especially in the shadow banking sector, which was not subject to the same rules and regulations as depository institutions. This lesson has led to the implementation of regulations that cover a broader range of financial institutions to prevent a similar crisis from occurring again.

One of the Lessons Learned from the 2008 Financial Crisis