The Aim of Regulatory Policy in the Financial System Is

question 55

Multiple Choice

The aim of regulatory policy in the financial system is to

• A)generate government revenues.
• B)promote a smooth-running and efficient financial system.
• C)make it difficult for firms to enter the financial services market.
• D)raise banking costs and create an outflow in the circular flow model.

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Definitions:

Total Asset Turnover

An economic indicator that assesses how well a business uses its assets to generate sales.

Profit Margin

A financial metric indicating the percentage of revenue that remains as profit after all expenses are deducted.

Statement of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

Net Cash Flow

The variance between the amount of cash coming into a business and going out of it during a given time frame.