Regulation of FIs is an attempt to enhance the social welfare benefits and mitigate the social costs of providing FI services.

Question

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Regulation of financial institutions (FIs) is aimed at improving the benefits of providing FI services to society while minimizing the potential negative consequences. These negative consequences may include fraud, financial instability, and excessive risk-taking. By regulating FIs, governments and regulatory bodies aim to promote a stable, efficient, and fair financial system that benefits everyone.

Regulation of FIs Is an Attempt to Enhance the Social