Consider the statements below: The Arguments for Strict Rules versus Lenient Rules

Statement $1$: Financial firms may lose money if regulations are lifted providing greater risk and eventually result in more failures.

Statement $2$: Regulations can increase customer confidence, which, in turn, may create greater customer loyalty toward regulated firms.

Statement $3$: Financial firms will always lose money if regulations are lifted, blocking entry of new firms into the regulated industry.

a$.$ Statements $2$ and $3$ are false

b$.$ All statements are false

C$.$ Only statement $3$ is false

d$.$ Statements $1,2$ and $3$ are true