Question

One purpose of regulation of financial markets is to _______.

A. increase competition among financial institutions
B. guarantee that the maximum rates of interest are paid on deposits
C. limit the profits of financial institutions
D. promote the provision of information to shareholders, depositors and the public.

Answer 1

Promote provision of information to shareholders, depositors and the public.

Step-by-step explanation:

Financial regulations are rules that are to be carried out by different financial institutions to maintain the honour of the financial system.

Financial markets are regulated to make sure that they carry out their various functions effectively.

Financial regulations helps to protect cutomers from financial fraud that may arise from credit card, mortgages. This regulations are put in place to protect a customer investment.