Which one of the following statements is a guiding principle of financial regulation?

Question $27$Answer

a$.$

Regulatory measures on the senior management ensure that decisions are taken in the best interest of the bank.

b$.$

Innovation is to be discouraged in the wake of the sub$-$prime lending debacle.

c$.$

Strict monitoring is needed to prevent excessive profits.

d$.$

The financial regulations imposed should be proportional to the advantages that are anticipated from the regulations.