In order to promote public confidence, government and the private sector can provide the following remedies:

Question

Quizplus · Accepted Answer

All of the options listed are strategies to promote public confidence in the financial system. Establishing government insurance systems can protect consumers' deposits, imposing minimum equity capital requirements ensures that financial institutions have a buffer to absorb losses, exercising market discipline encourages institutions to manage risk effectively, and encouraging the development of larger, diversified financial institutions can reduce the risk of failure.

In Order to Promote Public Confidence, Government and the Private