One purpose of regulation of financial markets is to
A) limit the profits of financial institutions.
B) increase competition among financial institutions.
C) promote the provision of information to shareholders, depositors and the public.
D) guarantee that the maximum rates of interest are paid on deposits.
C
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In a simple Keynesian model, an increase in income leads to an increase in
A) savings. B) investment. C) the price level. D) the money supply.
The law of one price states that
A) most countries require that all entering goods have the same price. B) most countries require that all exported goods have the same price. C) identical goods should have the same price anywhere in the world. D) most countries require that the price of a good not be changed once it is already in a store and available for sale.
Cyclical unemployment:
a. causes unemployment statistics to be understated. b. causes unemployment statistics to be overstated. c. occurs because of recessions. d. occurs because of technological innovations in production. e. only occurs with a zero inflation rate.
An increase in accrued wages during the accounting period represents an increase in cash.
a. true b. false