Question

name five (5) goals of Financial Regulation, (b) briefly describe each goal, and (c) describe why the government has an interest of achieving each goal.

Answer 1

5 goals are financial regulation are as follows-

1. Management of risk, but not elimination of risk-risk taking is the hallmark of enterprenual culture. Government should have an interest towords management of risk because it will help the management in generation of the returns which will help the overall output of the economy

2. Possessing clear and predictable rules-government should focus on defining clear and predictable rules so that companies should not be facing up with litigation problems and they can function smoothly.

3. Meeting the financial needs of American business and consumer sector-government should always focus on regulation of different financial institutions to meet the need of American business and consumer sector because everything is interrelated in an economy

4. Preservation of financial industry and different type of financial institution attached to it so it will help to protect the the interest of the consumers and businesses in an economy

5. Coordination between domestic and international countriesso that there should be better policy management and exchange of different resources between two countries in order to help its economy.