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Question: A Goal of Financial Regulatory Agencies is to?

Options:

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

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1 Answer

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1.) Prevent Monopolies

A Goal of Financial Regulatory Agencies is to Prevent Monopolies.


Explanation:

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 .

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How there would be misuse of laws and rules in Monopoly?

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