Financial Regulation Was Not Adequate to Deal with the 2008

Multiple Choice

Financial regulation was not adequate to deal with the 2008 financial crisis because:

A) before 2008 banks were very small and could be effectively regulated by the states.
B) up until the 2008 crisis, the market had worked very well in preventing banking crises, so there was very little need for bank regulation.
C) the role of shadow banks had become very important, but shadow banks were not subject to banking regulation at the time of the 2008 crisis.
D) the Supreme Court had ruled that the regulatory powers of the Federal Reserve were unconstitutional and prohibited the Fed from using its regulatory powers.