The primary purpose of bank regulation is to
A)assure that banks do not get into financial trouble.
B)assure that banks lend to needy persons and businesses.
C)assure that banks maintain a minimum level of profits.
D)guarantee bank profitability and prevent stockholder losses.

Question

Quizplus · Accepted Answer

The primary purpose of bank regulation is to assure that banks do not get into financial trouble. This is important for maintaining the stability of the financial system and protecting depositors' funds. Regulations help ensure that banks operate within sound financial practices, like maintaining appropriate levels of capital and not taking on excessive risk.

The Primary Purpose of Bank Regulation Is to