Which of the Following Is NOT a Goal of Financial

question 129

Multiple Choice

Which of the following is NOT a goal of financial regulation?

• A)ensuring the soundness of the financial system
• B)reducing moral hazard
• C)reducing adverse selection
• D)ensuring that investors never suffer losses

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Definitions:

Equilibrium

A state in a market where supply equals demand, with the selling price of goods remaining constant as long as other variables remain unchanged.

Price Floor

A government-imposed minimum price below which a certain good cannot be sold.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity, often aimed at protecting consumers.

Shortage

A situation where the demand for a product or service exceeds the supply available at a given price.