Question

The government regulates financial markets for two main reasons: A. to ensure that financial intermediaries do not earn more than the normal rate of return and to improve control of monetary policy. B. to ensure soundness of the financial system and to increase the information available to investors. C. to improve control of monetary policy and to increase the information available to investors. D. to ensure soundness of financial intermediaries and to prevent financial intermediaries from earning less than the normal rate of return.

Answer 1

Answer:

C. to improve control of monetary policy and to increase the information available to investors.

Explanation:

• The government regulates the financial markets for the investor as they ate fully informed and are free from the manipulation and thus the financial markets are made strong by the government and more stable for work.