Which of the following did not contribute to the law of diminishing control?
A)New financial institutions and instruments
B)Political pressure to reduce regulations
C)New monetary policy tools
D)Regulations covered fewer financial instruments

Question

Quizplus · Accepted Answer

The law of diminishing control refers to the decreasing effectiveness of regulatory policies over financial markets and institutions as they evolve. New financial institutions and instruments (A), political pressure to reduce regulations (B), and regulations covering fewer financial instruments (D) all contribute to this phenomenon by either circumventing existing regulations or reducing their scope. New monetary policy tools (C), however, are methods used by central banks to manage the economy and control the money supply, which do not directly contribute to the diminishing control of regulations over financial markets.

Which of the Following Did Not Contribute to the Law