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Q

A goal of financial regulatory agencies is to

A. prevent monopolies.

B. enforce workplace safety.

C. protect the environment.

D. enforce food safety.

A

Answer: A. prevent monopolies.

The primary role of financial regulators is to ensure fairness in financial markets and to prevent and investigate fraudulent activities in the financial space. They ensure efficiency and transparency of markets and also to ensure clients are treated with absolute fairness and honesty. They also help in regulating and supervising the general banking system to ensure stability. Price discrimination and inferior products are disadvantages of a monopoly in a capitalist economy and as such, financial regulators are keen on preventing monopolies from occurring.

2 years ago
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