Which of the following best illustrates the government’s role in controlling financial institutions?

Question

anonymous · Answer

The government directly influences the price of stocks in the stock market by taxing purchases of stock.

 The government limits the amount of loans that individuals can take out from banks.

 The government regulates the terms that credit card companies can give their customers.

 The government directly sets the interest rate that banks charge for loans

kenljw · Answer

Frankly there's no limit on interest to loan, only on limits on collection policy
No limit on loan size
Federal Government only insures money to a certain level on bank accounts
The FED reserve is a banking system and not controlled by Government
Student loans are not eliminated with bankruptcy, Government policy

kenljw · Answer

Back child support can not be eliminated with bankruptcy
Taxes effect all forms on income with or without loop holes

kenljw · Answer

limit on loan collection policy - you can not break their legs

kenljw · Answer

If FED reserve set banking interest rates at 2% and you have bad credit an other bank may gamble on you with a higher interest rate.  Generally a person will take lower rate if given.