Question

use economic arguments to justify regulation of both financial institutions and financial markets

use economic arguments to justify regulation of both financial institutions and financial markets

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
  • Both regulation of financial markets and financial institutions is necessary to prevent the exploitation of the investors and the borrowers.
  • RBI needs to control the working of financial institutions in order to make the funds available to the borrowers at an appropiate rate.
  • SEBI needs to control the financial market and the intermediaries in order to ensure that the investors get a minimum rate of return on the amount invested by them because every investor expects high return if he is ready to bear higher risk.
  • Further both the financial market and financial institutions are interlinked with each other, working of both in a balanced manner can help the economy to grow at a large scale.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A financial system consists of both financial institutions and financial markets. Financial markets bring the “key...
A financial system consists of both financial institutions and financial markets. Financial markets bring the “key players” together and their funds. For this discussion, choose one of the functions of the financial markets and discuss how financial institutions play a role in this process.
What should be the role of regulation in financial markets? What are the implications of financial...
What should be the role of regulation in financial markets? What are the implications of financial regulation?
How are the securities and exchange commission’s regulation S and Rule 144A similar?             Both allow...
How are the securities and exchange commission’s regulation S and Rule 144A similar?             Both allow firms to raise capital without registering with the SEC if certain conditions are met.             Both are intended to increase transparency of financial markets             Both use incentives and penalties to ensure fair dealing between large financial I institutions and small investors             Both encourage specialized training by individuals designated to sell securities
What are the three areas of finance? Institutions and markets, investments, and entrepreneurial finance Investments, institutions...
What are the three areas of finance? Institutions and markets, investments, and entrepreneurial finance Investments, institutions and markets, and personal finance Institutions and markets, investments, and financial management Investments, entrepreneurial finance, and financial management
Critically analyse the arguments used for and against the regulation of financial reporting through accounting standards.
Critically analyse the arguments used for and against the regulation of financial reporting through accounting standards.
Should there be more or less regulation of the highly complex financial markets of the 21st...
Should there be more or less regulation of the highly complex financial markets of the 21st century?
Why the investors prefer to raise finance from capital markets than to financial institutions?
Why the investors prefer to raise finance from capital markets than to financial institutions?
In 1860s, there was no existence of financial markets and institutions in the economy. However, investing...
In 1860s, there was no existence of financial markets and institutions in the economy. However, investing activities were still performed in the economy. If you were an investor back then, what sort of risks would have been associated with your investments?
What are the economic arguments both for and against increased migration into Australia?
What are the economic arguments both for and against increased migration into Australia?
Financial Markets play critical role in the Economic Development of an economy. Critically examine the role...
Financial Markets play critical role in the Economic Development of an economy. Critically examine the role of Ghana’s Financial Markets to the Ghanaian economy.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT