Which of the following are reasons that banks are so heavily regulated?
A)Governments are concerned about the safety of deposits.
B)The industry is a principal determinant of aggregate demand.
C)Bank failures are contagious.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the above reasons contribute to the heavy regulation of banks. Governments are concerned about the safety of deposits to protect consumers and maintain confidence in the financial system. Banks have a significant impact on aggregate demand, and their failures can have ripple effects on other institutions and the economy as a whole, leading to contagion.

Which of the Following Are Reasons That Banks Are So