Banking regulation is intended to prevent
A)Bank failures
B)Excess bank profits
C)Bank losses
D)Banks from selling securities
E)Banking monopolies

Question

Quizplus · Accepted Answer

Banking regulation is primarily intended to prevent bank failures by ensuring that banks operate in a safe and sound manner and have adequate capital to absorb losses. Other objectives of banking regulation may include protecting consumers, promoting competition, and preventing financial system instability, but the prevention of bank failures is usually the primary goal.

Banking Regulation Is Intended to Prevent