Question

What are the purposes of financial regulations? choose three answers.

-to make business competitive
-to enforce government intervention
-to limit and prevent monopolies
-to allow businesses to collaborate
-to ensure only one business can operate -to place regulations on pricesn president nixon president clinton president ford

Answer 1

Financial regulations serve to prevent monopolies, allow for controlled government intervention in the economy, and regulate prices, especially in case of natural monopolies, to protect consumers and maintain a fair marketplace.

Step-by-step explanation:

The purposes of financial regulations are multifaceted and are intended to ensure a well-functioning and fair economy. Among their objectives, three most prominent purposes include:

1. Preventing monopolies: Regulations are designed to limit and prevent monopolies, which can stifle competition and disadvantage consumers through higher prices and lower quality products.
2. Government intervention: Regulations allow for controlled government intervention in the economy to enforce laws that protect consumers, workers, and the environment, ensuring a more ethical and sustainable market operation.
3. Regulations on prices: In some cases, particularly with natural monopolies, the government may place regulations on prices to prevent companies from setting prices too high and taking advantage of consumers.

Through these regulatory actions, the government is able to maintain order, ensure the efficient functioning of the market, and promote healthy competition.