How does macroprudential regulation relate to conventional ...

[Jipu 123]

How does macroprudential regulation relate to conventional measures to prevent fraud and promote transparency?
 
  What will be an ideal response?

Question 2

At any point on the LM curve
 
  a. there is labor market equilibrium.
  b. money supply equals money demand.
  c. equilibrium output equals potential output.
  d. both commodity and money market are necessary for equilibrium.
  e. both b and c.

[Andromeda18]

Answer to Question 1

Conventional measures address the danger that particular firms and individuals might engage in behaviors contrary to the interests of others. Macroprudential regulation addresses the danger that behaviors that seem benign in isolation may, in aggregate, threaten the stability of the financial system. Macroprudential regulators monitor systemic conditions and trends. If they conclude that a systemic threat is emerging, they rely heavily on the ability of conventional regulators to adjust and to tighten their oversight to discourage the relevant behaviors.

Answer to Question 2

B