in Finance by (257k points)

Question: A Goal of Financial Regulatory Agencies is to?


  1. Prevent Monopolies
  2. Enforce Workplace Safety
  3. Protect the Environment
  4. Enforce Food Safety.

Please log in or register to answer this question.

1 Answer

+1 vote
by (735k points)
selected by
Best answer

1.) Prevent Monopolies

A Goal of Financial Regulatory Agencies is to Prevent Monopolies.


Financial regulatory agencies prevents the monopoly in the market because monopolies can be negative in a Economy. There would no competition in the Market which eventually would let to monopoly of a single country.

In monopoly, the price/quality of any product is usually controlled by a single manufacturer. This would led to hike in price to gain more and more profit. The no-competition in the market may degrade the quality and value of the product.

Also, in monopoly, the whole market is driven by that single company/manufacturer as they want. This will be misuse of laws and rules.

In general, Monopoly is not considered as great choice in any Economy .

by (257k points)
How there would be misuse of laws and rules in Monopoly?

Related questions