Question

L04 E2-4 Over the past 100 years, the level of government regulation of financial instirutions and markets has ebbed and flowed or, as some economists might argue, has ebbed and flooded. Although the laws and regulatory agencies created by the government have various defined and not-so-well-defined goals, what, might you argue, is the single biggest benefit of government regulation?

Answer 1

The single government achievement is drag all the regulatory bodies under one umbrella. It itself is the great achievement to the governments of all nations, and there are many regulatory bodies in all aspects. for example in India, banks are regulated by Reserve Bank of India, Markets are regulated by SEBI, Insurance firms are monitered by IRDA, general insurance is monitered by General insurance corporation etc.

Hence, in every nation, they have their own regulatory bodies to make smooth functioning of the firms. It is the great achievement to the governments.