Which of the following is a goal of the Dodd-Frank Act?

The Dodd-Frank Act, enacted in response to the financial crisis of 2007-2008, aimed primarily to enhance the stability of the financial system and to protect consumers from abusive financial practices. One of the key goals of the Dodd-Frank Act was to address the issue of "too big to fail" institutions, which refers to financial entities whose failure could cause systemic risk to the economy. By implementing measures such as stricter capital requirements, stress tests, and living wills for large financial institutions, the Act sought to ensure that these institutions would be able to fail without requiring taxpayer bailouts, thereby promoting a more stable financial environment.

This focus on mitigating the risks associated with large financial institutions is critical to preventing future financial crises, as it aims to reduce the moral hazard that can arise when companies are perceived to have an implicit government guarantee due to their size and importance. Thus, the recognition of this objective underscores a core principle of the Dodd-Frank Act and its implications for financial regulation and corporate governance.