The aim of regulatory policy in the financial system is to
A)generate government revenues.
B)promote a smooth-running and efficient financial system.
C)make it difficult for firms to enter the financial services market.
D)raise banking costs and create an outflow in the circular flow model.

Question

Quizplus · Accepted Answer

The aim of regulatory policy in the financial system is to promote a smooth-running and efficient financial system. This is achieved by setting rules and standards that financial institutions must follow in order to maintain stability and protect consumers. The goal is not to generate government revenues, make it difficult for firms to enter the market, or raise banking costs.

The Aim of Regulatory Policy in the Financial System Is