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Answer: Addressing both agency problems and funding long-term liabilities
The objectives of market regulation encompass multiple facets, including: 1. Mitigating fraud; 2. Addressing agency problems; 3. Promoting fairness; 4. Establishing mutually beneficial standards; 5. Preventing undercapitalized financial firms from engaging in excessively risky investments; 6. Ensuring the funding of long-term liabilities. Option C is correct because market regulation aims to achieve both controlling agency problems and ensuring that long-term liabilities are funded, not just one or the other.
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