Question

Discuss the role of the government within the US financial markets. In particular, be sure to address:

1) the justifications and motivations for government involvement.

2) the primary purposes/objectives for oversight and reform.

3) the major regulatory entities and their respective roles.

Answer 1

Answer :-

The role of the government within the US financial markets is very wide. A government can play a major role in it. The role of the government includes regulation (passive rules), intervention (active discretion), and their personal financing needs. Saving , lending and hedging are the three major roles that are very most important for the stable economy. And there are others roles also such as the use of the interest rate caps , Implementation of a effective scheme for the profit allocation. A listing guide of the government is provide various details related to the listing prefrences of the foreign government into the stock exchanges.

Also there is a need of government intervention is due increasing uncertainity of the industrial societies , performance failures also. There are two objectives that are equity and efficiency and these are to be achieved by the intervention of the government and otherwise not.The role of government in financial markets must be to contribute to the development of an efficient system for financial governance that includes the clear mechanism and also the reliable system for the timely payment structures.