Question:
What are the two main reasons why the government regulates the financial system?
Regulations:
They refer to an official rules passed by the government to control a given activity in the market. For instance, if the country is importing hefty amounts of a particular commodity, the government can increase the tariffs to control the quantity imported. Governments effectively implement regulations by using various agencies formed to monitor different activities in the economy.
Answer and Explanation:1
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The financial system refers to a system that comprises various entities, including borrowers, lenders, and investors, exchanging funds in a given...
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