Why does the government take an active role in the regulation of the u.s. financial system?

1 answer:

8 0

The government take an active role in the regulation of the u.s. financial system because commercial banks are essential to the creation of money and to the protection of American citizens.

Commercial banks are essential to the printing of banknotes and are therefore regulated by the government to make sure a sound and competitive financial system. Government is the best political party to maintain the financial system.

However, excessive state intervention is undesirable because it interferes with laissez-faire policies, which are very important for financial markets. Governments therefore have a challenging role to play. Its purpose is to ensure the smooth functioning of the financial system. However, this should be done without direct intervention.

Know more about financial system here

brainly.com/question/28145547

#SPJ4

You might be interested in

Criminal victimizatin in South African perspective

nydimaria [60]

Crime victimization is defined as the involuntary, personal exposure to criminal acts.

<h3>What is criminal victimization?</h3>

Criminal victimization refers to a person being the victim of a violent crime or a property crime. People suffered with a severe mental illness may be at higher risk of criminal victimization due to the result of possible cognitive impairment.

The impact of criminal victimization can be serious, throwing victims into a state of shock, fear, anxiety and anger. victimization can also cause some emotional, physical, psychological and financial loss to the people.

The impact and consequences of criminal victimization can be result in a serious risk that may involve physical injury, financial loss, and property damage, as well as psychological and emotional after-effects.

Learn more about criminal victimization here:-

brainly.com/question/20250390

#SPJ1

4 0

1 year ago

What clause are included in our constitution to make our nation......of nepal<br><br>

Ksju [112]

Nepal is defined in article 4 as an "independent, indivisible, sovereign, secular, inclusive, democratic, socialism-oriented, federal democratic republican state." A bicameral parliamentary system was created with two Federal houses and unicameral parliamentary systems in each province

( I think this might help good luck )

8 0

3 years ago

What responsibilities do state governors have?

pishuonlain [190]

State governors head the executive branch of the state government which is basically mandated with the responsibility of carrying out the governor’s policies. They have the power to appoint various officials and also control over the budget. They also have an influence on the issues that the state legislatures legislate upon

6 0

3 years ago

Read 2 more answers

Who expanded Egyptian trade in the Mediterranean? Hatshepsut Khufu Thutmose III Ramses II

Nostrana [21]

Queen Hatshepsut ruled as a pharaoh and expanded trade during the new kingdom.

7 0

3 years ago

What is the right chronological order for Constitutional convention Federalist papers Articles of Confederation Bill of rights R

jok3333 [9.3K]

Answer:

The right chronological order is:

The 1)Constitutional Convetion, in which the 2)Articles of Confederation were drafted, but had to be replaced because they made the federal government too weak and ineffective.

The 3)Federalist Papers were then written by James Madison and Alexander Hamilton, in order to promote the new constiution, which was ratified (4)Ratification of the Constitution).

However, the Anti Federalists were skeptical of the new constitution, and to gain their support, the 5)Bill of Rights was added.

3 0

3 years ago