9.The government regulates financial market and financial institutions for three main reasons.  What are those reasons?   I.   To ensure the soundness of financial market and institution II.  To ensure the soundness of the financial system III. To increase the information available to the investors IV.   To increase the information available to the users. V.    To improve control of the financial information VI.   To improve control of financial system.     a. I, II, V b. I, III, IV c. II, III, IV d. II, III, VI

Essay 2. What is the relationship between financial crises, regulation and asymmetric information?

As described in the textbook, the following are some of the general principles of proper bank management, EXCEPT: O Liquidity Management O Asset Management Capital Adequacy Management O Principal Agent Management

Bank soundness is the ability of a bank to carry out normal banking operations and is able to fulfill all its obligations properly and in accordance with applicable banking regulations. Banking activities consist of:1. Ability to manage funds2. Ability to channel funds to the community3. The ability to fulfill obligations to other parties4. Compliance with applicable regulations.Meanwhile, the definition of bank soundness is a form of qualitative assessment of various aspects that affect the condition or performance of a bank through quantitative and / or qualitative assessments of the factors of capital, asset quality, management, profitability, liquidity and sensitivity to market risk.Explain what you know about a bank's soundness rating factor!