A general principle of regulation is:
A)do not offset the moral hazard problem.
B)set as few bad precedents as possible.
C)let banks fail regardless of the effect on the economy.
D)the need to reduce regulations over time.

Question

Quizplus · Accepted Answer

Setting as few bad precedents as possible is a general principle of regulation. This is because bad precedents can lead to unintended consequences in the future, undermining the effectiveness of regulations and potentially leading to systemic risks or abuses.

A General Principle of Regulation Is