Regulation of the financial system ________.
A) occurs only in Canada
B) protects the jobs of employees of financial institutions
C) protects the wealth of owners of financial institutions
D) ensures the stability of the financial system

Question

Quizplus · Accepted Answer

The regulation of the financial system is done to ensure stability and prevent crises like the 2008 financial crisis. It involves setting rules and standards for financial institutions and monitoring their compliance to prevent risks that could lead to systemic failure. The protection of jobs and wealth may indirectly result from a stable financial system, but it is not the primary goal of regulation. Also, regulation occurs in many countries, not just Canada.

Regulation of the Financial System ________