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

medium Q4 of 15
Financial Awareness - Risk, Stability & Emerging Finance
Which of the following is NOT a function of financial regulation?
AEnsuring transparency in financial markets
BSetting the repo rate
CProtecting investors and depositors
DPreventing financial fraud and malpractice
Step-by-Step Solution
  1. Step 1: Understand functions of financial regulation

    Functions include transparency, investor protection, and fraud prevention.
  2. Step 2: Analyze the options

    Setting the repo rate is a monetary policy tool managed by RBI, not a direct function of financial regulation.
  3. Final Answer:

    Setting the repo rate → Option B
  4. Quick Check:

    Setting repo rate = monetary policy tool ✅
Quick Trick: Distinguish regulation from monetary policy tools
Common Mistakes:
  • Confusing repo rate setting with regulatory functions
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