After the 2008 financial crisis, policy makers realized that the scope of banking regulation was:
A)too narrow, because the Federal Reserve was the only agency with any power to regulate banks.
B)too broad, because both depository and shadow banks were overregulated.
C)too broad, because market forces, not government regulation, should be allowed to determine the outcome of a financial crisis.
D)too narrow, because shadow banks were not subject to much regulation.

Question

Quizplus · Accepted Answer

After the 2008 financial crisis, policy makers realized that shadow banks had operated without much regulation and contributed significantly to the crisis. Therefore, the scope of banking regulation was seen as too narrow because shadow banks were not subject to much regulation.

After the 2008 Financial Crisis, Policy Makers Realized That the Scope