Which statement describes one government role in controlling financial institution's
A. The government directly influences the price of stock market by taxing purchases of stock.
B. The government limits which people are able to take out loans from private banks.
C.The government limits what credit card company can charge its customers in fees.
D. The government directly provides the money to banks that is used to provide loans.
I agree -- c.
I think its c
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To determine the correct answer, let's go through each statement and analyze the role of the government in controlling financial institutions.
A. The statement suggests that the government directly influences the price of the stock market by taxing purchases of stock. However, this is not an accurate description of a government role in controlling financial institutions. The government's role in controlling financial institutions usually focuses on regulations and oversight rather than direct control over stock prices. Therefore, option A is not the correct answer.
B. This statement suggests that the government limits which people are able to take out loans from private banks. This is a possible government role in controlling financial institutions. Governments may establish regulations and criteria that individuals must meet to qualify for loans from private banks, such as creditworthiness, income, and collateral requirements. Therefore, option B could be a correct answer.
C. The statement suggests that the government limits what credit card companies can charge their customers in fees. This is also a possible government role in controlling financial institutions. Governments often regulate consumer protection laws and set limits on fees that credit card companies can charge to prevent excessive or unfair charges. Therefore, option C could also be a correct answer.
D. This statement suggests that the government directly provides the money to banks that is used to provide loans. While it is true that governments may provide financial assistance to banks in times of crisis or economic instability, such as bailouts, this is not an ongoing role in controlling financial institutions. Governments primarily regulate and oversee banks but do not generally play a direct role in providing the funds banks use for loans. Therefore, option D is not the correct answer.
Based on the analysis, the correct answers are B and C. The government's role in controlling financial institutions can include limiting who can take out loans from private banks (option B) and limiting the fees that credit card companies can charge their customers (option C).