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Which of the Following Describes the Law of Diminishing Control

Question 59

Multiple Choice

Which of the following describes the law of diminishing control?


A) The Federal Reserve Bank cannot impact excess reserves and the money supply.
B) Financial institutions have few ways to assess the solvency of borrowers.
C) After regulations are enacted, institutions find ways around the regulations.
D) As people engage in leverage, they have less and less control over the price of the asset.

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