During the last few decades, the world witnessed a lot of events that had major economic ramifications. Right from the sub-prime crisis and the global recession in 2008 to the Chinese devaluation of the Renminbi, each and every second of our lives is affected by financial happenings. It does not matter which part of the world we reside in; our lives are affected directly or indirectly by such major economic mishaps. Consequently, studying economics and finance is getting more important by the day.
Students all over the world have always been interested in studying how financial system works. However, with such major events in the last few years, it has gained even more popularity. The reason for that is one thing – control. In a microeconomic perspective, just like you would like to have control over your own finances and budget inside your house, a nation likes to have proper control over its economy and finances.
This control is known as financial regulation or regulatory economics in a broad sense. Students studying finance are taught about financial regulation, and regular assignments too need to be done. These assignments are often fairly hard and so financial regulation help homework is a major thing that few helpful websites provide to the students.
Aims of financial regulation
There are several important aspects of studying financial regulation. As a student, you learn basic aims that various economic measures hope to achieve through financial regulation. These aims are:
- Maintaining financial stability –
This is probably the primary motive behind financial regulation. Protecting the economy from external factors which keep happening around the globe is pretty vital.
- Consumer protection –
Protecting the interests of the consumer is another vital thing that financial regulation aims to achieve. The students learn about this in their financial regulation help homework.
- Market confidence –
Regulating the economy in such a way that citizens of a nation or consumers have confidence in the economy is quite important.
- Reducing crime –
Probably the second most vital thing that regulation strives to achieve is to keep crimes in check. Financial crimes include money laundering, taxing evasion, etc.
Theories of regulation
A regulatory economy is a supposedly protective environment that seeks to protect the financial environment and recover from market failures. There are two fundamental sets of theories about a regulatory economy – first idea is about positive theories and the other idea is of normative theories. While positive theories call for protection of operators and firms from competition, normative theories ideate that competition should be encouraged as much as possible.
When you do your assignments, you will be studying each of these theories in detail in the financial regulation help homework. These theories often get confusing and in such cases online assistance from various websites that are quite happy to help.
How do authorities go about regulating the economy?
Regulation does not just happen; it takes a lot of effort in keeping an eye on various institutions to keep malpractices away. Surveillance and monitoring of various bodies also help in absorbing shocks like recession and other sudden changes in the economy.
The bodies which are kept under a monitoring process include stock exchanges, banks, large investment companies or individuals, companies that are listed to be put under supervision, etc. More such bodies and individual businessmen are also monitored, and you’ll study more examples of such bodies in your financial regulation help homework.
Bodies that act as regulatory authorities
Now when it comes to authorities, there are quite a lot of government-approved bodies that carry out the actual supervision and surveillance. For instance, govt agencies like the US Securities and Exchange Commission keep an eye primarily stock exchanges, whereas the Financial Industry Regulatory Authority is a private body that acts as a self-regulatory organization (SRO) but under the purview of the US Securities and Exchange Commission.
There are several such bodies that do the same job like:
- Commodity Futures Trading Commission.
- Federal Reserve System.
- National Credit Union Administration.
Outside of the US, there are similar regulatory bodies. For example, the UK has the Bank of England, their central bank that supervises the economy while Switzerland has the Swiss Financial Market Supervisory Authority. Function of such bodies will probably have to be described in your financial regulation help homework.
While the need for a financial regulation might seem a very necessary thing, there have been economists of varying schools of thought that have opposed regulation. For instance, Nobel-winning Neo-Classical economist Milton Friedman has always advocated the limitation of government involvement in various economic sectors. For them, too much government involvement could result in the freedom of some specific firms due to favoritism and therefore would not ensure equality. If you want to know more about finance and facets associated with it, you can check out “financial management help homework.”
In any case, fact remains that financial regulation is reality and a part of all finance studies curriculum. You need to study about it in detail. In case you feel you are having trouble completing assignments regarding this particular portion, online help is always available.