In: Economics
The following are some of the macroeconomic factors that are currently related to the increasing risk and volatility perceived in financial markets, EXCEPT:
Question 30 options:
Trade Wars with China and Mexico |
|
Tendency to an inverted yield curve |
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Increasing regulation on banks and financial institutions |
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Increasing financialization of the economy |
Increasing regulation on banking system and other financial institutions cannot result in increasing the risk and volatility in the financial market. This is because when there is a regulated environment, market participants believe that there will be appropriate action as soon as the regulations are not followed. This reduces the amount of risk involved in market activities.
Correct choice is third option