Bank Regulation Exists Because Public Authorities Are Convinced That

Multiple Choice

Bank regulation exists because public authorities are convinced that

A) the balance between public interest and safety does not affect profitability, and should be removed from the hands of managers.
B) the balance between bank profitability and public interest cannot be handled with legislation, but can be handled with regulation.
C) the balance between bank profitability and safety cannot be left to profit-maximizing managers.
D) the balance between bank safety and public interest can best be obtained by reliance on the market.