Which of the following is a main reason that regulators are interested in having financially strong banks?

Multiple Choice

• Because goal of regulators is for interest rates to have low volatility.

• Because when banks are strong, regulators can relax their audit frequency and the strength of regulations.

• Because banks that are financially strong are most likely to help financial consumers grow and prosper.

• Because by overseeing banks, regulators are implying to investors that banks are good investments.

• Because financially strong banks are usually less transparent.