Series 79 practice questioneasyRegulatory Impact
Which regulatory change would MOST likely increase barriers to entry in the U.S. financial services sector?
- AReduced reporting requirements
- BLowered interest rates
- CRelaxed advertising restrictions
- DIncreased minimum capital requirements✓ Correct answer
Explanation
Why D — Increased minimum capital requirements
Higher capital requirements make it harder for new firms to enter due to increased financial demands. Lowered interest rates affect profitability, while relaxed advertising and reporting requirements lower barriers.
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