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

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.

Question

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

anonymous · Answer

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