Q.

The government regulates financial markets for three main reasons:

A. to ensure soundness of the financial system, to improve control of monetary policy, and to increase the information available to investors.
B. to improve control of monetary policy, to ensure that financial intermediaries earn a normal rate of return, and to increase the information available to investors.
C. to ensure that financial intermediaries do not earn more than the normal rate of return, to ensure soundness of the financial system, and to improve control of monetary policy.
D. to ensure soundness of financial intermediaries, to increase the information available to investors, and to prevent financial intermediaries from earning less than the normal rate of return.
Answer» A. to ensure soundness of the financial system, to improve control of monetary policy, and to increase the information available to investors.
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