MCQOPTIONS
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| 1. |
The government regulates financial markets for three main reasons: |
| A. | to ensure soundness of the financial system, to improve control of monetary policy, and to increase the information available to investors. |
| B. | to improve control of monetary policy, to ensure that financial intermediaries earn a normal rate of return, and to increase the information available to investors. |
| C. | to ensure that financial intermediaries do not earn more than the normal rate of return, to ensure soundness of the financial system, and to improve control of monetary policy. |
| D. | to ensure soundness of financial intermediaries, to increase the information available to investors, and to prevent financial intermediaries from earning less than the normal rate of return. |
| Answer» B. to improve control of monetary policy, to ensure that financial intermediaries earn a normal rate of return, and to increase the information available to investors. | |