Final answer:
The type of transcription factor that binds DNA and enhances gene transcription is an activator exerting positive control.
Step-by-step explanation:
The type of regulatory transcription factor that binds DNA and increases the transcription of a gene is D. an activator exerting positive control. Activators are crucial in the regulation of gene expression; they bind to specific DNA sites near the genes they control and enhance the interaction of RNA polymerase with the promoter, facilitating the transcription process. This is opposed to repressors, which bind to operator regions and block the transcription of genes in response to external stimuli.