Are new regulations likely to prevent a future financial crisis?
A) Yes, regulatory agencies have been effective at anticipating the secondary effects of new regulations.
B) Yes, industries that were highly regulated were unaffected by the Crisis of 2008.
C) No, regulators have a poor record with regard to foreseeing future problems.
D) No, current regulations could have prevented the Crisis of 2008, but were largely ignored.

Question

Quizplus · Accepted Answer

Regulatory agencies have historically struggled to foresee future problems and effectively prevent financial crises. The Crisis of 2008 showed that even well-regulated industries can be affected by broader economic issues, and current regulations may not be enough to prevent future crises.

Are New Regulations Likely to Prevent a Future Financial Crisis