Which of the following statements is most correct?
A) Financial regulators do everything possible to encourage competition in banking.
B) Financial regulators work to prevent monopolies but also work to prevent strong competition in banking.
C) Financial regulators discourage competition in banking.
D) Financial regulators prefer banks to have monopoly power in their geographic markets.

Question

Quizplus · Accepted Answer

Financial regulators work to prevent monopolies that can harm consumers and the economy, but they also recognize that excessive competition can lead to instability and risky behavior by banks. Therefore, they strive to find a balance between promoting competition and maintaining stability in the banking industry.

Which of the Following Statements Is Most Correct