During the a recession, the government of Cashland flooded several banking, financial services, and insurance firms with government funds in exchange (at least temporarily) for government ownership rights. This move signaled the government's concern that the global banking system might collapse if these firms ended up in bankruptcy. This decision for government involvement in these firms demonstrates:a. the unforgiving nature of capitalism.

b. the desire for more individuals in the u. s. to live under a socialist system.

c. the trend toward mostly capitalist nations to move toward socialism.

d. the freedoms the u. s. government has under capitalism.

Question

Georgia Randall

Business

19 June, 15:25

During the a recession, the government of Cashland flooded several banking, financial services, and insurance firms with government funds in exchange (at least temporarily) for government ownership rights. This move signaled the government's concern that the global banking system might collapse if these firms ended up in bankruptcy. This decision for government involvement in these firms demonstrates:a. the unforgiving nature of capitalism.

b. the desire for more individuals in the u. s. to live under a socialist system.

c. the trend toward mostly capitalist nations to move toward socialism.

d. the freedoms the u. s. government has under capitalism.

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Answers (1)

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Kamora Brewer · Answer 1

Answer: Option C

Explanation:

In socialist economy the goods are services produced for one's one use whereas in capitalist economy the goods and services are produced for the purpose of selling in other countries to earn profits out of it. In the above case the government tries to take over the rule by funding the banks, financial institutions and insurance firms.

This trend into which the government plans to move the economy of the country is to bring the socialist trend towards a capitalist economy.