Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

Tiu Asset Management (TAM), a hypothetical financial services firm, recently hired Jonna Yun. Yun is a member of TAM’s Global Equity portfolio team and is assigned the task of analyzing the effects of regulation on the financial services sector of a par-ticular country. In her first report to the team, Yun makes the following statements:Statement 1 The country’s regulator, a government agency, concerned about systemic risk, is calling for an accelerated adoption of central-ized derivatives settlement (as opposed to bilateral settlement between two counterparties)—a more stringent rule—ahead of other major countries that are considering a similar move.Statement 2 Regulators use various tools to intervene in the financial services sector.Statement 3 Regulations may bring benefits to the economy, but they may also have unanticipated costs.Statement 4 The country’s regulatory authorities are considering a regula-tion that is similar to Regulation Q in the United States, which imposed a ceiling on interest rates paid by banks for certain bank deposits.
What is the most likely basis for the concerns noted in Statement 1?
Option A:Externalities
Option B:Regulatory arbitrage
Option C:Informational friction

Answer: B