Question

The idea that regulation primarily benefits regulators and/or government is called _______.
a) Public Choice
b) Public Interest
c) Regulatory Capture
d) Regulatory Dialectic

Answer 1

Option "C" is the right answer.

Regulatory Capture - The term regulatory Capture is defined as the situation in which an Organisation or regulatory agency which is established to act in favor of public interest deviates its path and advances the commercial or political concerns of special interest groups that dominate the industry or sector it is charged with regulating.

Regulatory Dialectic - The term "regulatory dialectic" refers to the dual system of banking regulation in the United States and selected other countries where both the federal or central government and local governments regulate banks.