Question

What is the most important reason financial information is provided by the major regulatory agencies to investors, depositors, and creditors of banks and financial institutions?
a-so they can regulate the banking industry
b-to manage business operations at the bank
c-to manage financial resources
d-to make informed decisions about banks and their financial condition

Answer 1

Answer:

d. to make informed decisions about Banks and their financial condition.

Explanation:

Financial regulatory agencies are saddled with the responsibility of providing financial supervision and regulations to Banks and financial institutions. They also maintain integrity in the financial system inorder to boost the confidence of investors, creditors, depositors and the general public.

However, one of the major reasons why financial information is provided by the regulatory agencies to investor, creditors and depositors is to make informed decisions about Banks and their financial conditions.

This means that various groups that have interest in Banks and financial institution are kept abreast of happenings in the financial sector of the economy and are able to know which bank and financial institution is healthy in terms of finances and to know where to invest subsequently.