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1 FINANCE MCQS

The government regulates financial markets mainly to __________?

  • Increase information available to investors
  • Ensure the soundness of the financial system
  • Create a sound atmosphere
  • Both A and B
Correct Answer: D. Both A and B

Detailed Explanation

Governments regulate financial markets to protect investors and maintain stability. Regulations aim to increase transparency by providing accurate information and ensure the overall soundness of the financial system to prevent crises and maintain trust.

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