Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Since regulators are concerned with the social cost of a failure, regulatory models will normally tend to be more conservative than private sector models that are concerned only with the private costs of failure.
B) Since regulators are concerned with the social cost of a failure, regulatory models will normally tend to be less conservative than private sector models that are concerned only with the private costs of failure.
C) Regulators and private firms are both concerned with the social cost of a failure and thus their models do not differ.
D) None of the listed options are correct.