155k views
4 votes
What secondary benefits often accrue to the entire financial system because of this monitoring process?

a) Increased government intervention
b) Enhanced economic stability
c) Higher interest rates
d) Reduced market efficiency

User Halostack
by
8.1k points

1 Answer

0 votes

Final answer:

The monitoring process in the financial system can lead to enhanced economic stability, reduced market efficiency, and increased government intervention.

Step-by-step explanation:

One secondary benefit that often accrues to the entire financial system due to the monitoring process is enhanced economic stability. When the financial system is monitored, it helps identify and mitigate risks, which can contribute to a more stable economy.

Another secondary benefit is reduced market efficiency. When the financial system is monitored, it ensures fair and transparent market practices, reducing the likelihood of fraud and market manipulation. Lastly, increased government intervention is another secondary benefit that can be a result of the monitoring process. Government intervention can be necessary to regulate and enforce compliance within the financial system.

User Ase
by
7.8k points