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Question regarding the true of regulation

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Reference no: EM131040107

Which of the following is true of regulation?

1. Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems.

2. Policy-makers are hesitant to call for new regulations even when it is clear they would help avert future crises.

3. Mortgage lending and banking have historically been unregulated and therefore regulation in these sectors is unpopular.

4. Past regulations have been effective at averting crises, but they are unpopular because they reduce the profitability of the regulated industry.

Reference no: EM131040107

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