An example of a government-based approach to improve the quality of information in financial markets is ________.

Question

Quizplus · Accepted Answer

Mandatory disclosures require companies to disclose relevant financial information, such as financial statements, to the public. This helps improve the quality of information available in financial markets and allows investors to make informed decisions. This approach is government-based as it is enforced by regulatory agencies such as the Securities and Exchange Commission (SEC) in the United States. Financial news networks (A) and government safety nets (D) may provide information and stability to financial markets, but they do not directly address the quality of information available. Government-directed credit (C) involves the government providing credit to specific industries or individuals, which may impact financial markets, but again, it does not directly improve the quality of information available in those markets.

An Example of a Government-Based Approach to Improve the Quality