Which of the following IS NOT a reason that the goverment regulates financial ma

Question

Which of the following IS NOT a reason that the goverment regulates financial markets?

A)To increase information available to investors.

B) To ensure the soundness of the financial system.

C) To guarantee consumers that they will not put their money in an unsafe investment.

D) To improve control of monetary policy.

A)To increase information available to investors.

B) To ensure the soundness of the financial system.

C) To guarantee consumers that they will not put their money in an unsafe investment.

D) To improve control of monetary policy.

Explanation / Answer

The answer is option C.

Guaranteeing consumers that they will not put their money in an unsafe investment is not one of the objectives why the government regulates the financial system.

The government does not provide such guarantee of the consumer’s investments.

I hope that was helpful :)

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