Ways in Which Bank Regulations Reduce the Adverse Selection and Moral

Multiple Choice

Ways in which bank regulations reduce the adverse selection and moral hazard problems in banking include

A) a chartering process designed to prevent crooks from getting control of a bank.
B) restrictions that prevent banks from acquiring certain risky assets, such as common stocks.
C) high bank capital requirements to increase the cost of bank failure to the owners.
D) all of the above.
E) only A and B of the above.