Which statement describes one government 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 which people are able to take out loans from private banks.

The government limits what a credit card company can charge its customers in fees.

The government directly provides the money to banks that is used to provide loans.

Question

Kaiya Rodriguez

Social Studies

30 November, 07:08

Which statement describes one government 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 which people are able to take out loans from private banks.

The government limits what a credit card company can charge its customers in fees.

The government directly provides the money to banks that is used to provide loans.

+1

Answers (1)

Know the Answer?

Meghan Hurst · Answer 1

The government limits what a credit card company can charge its customers in fees.

Explanation:

Usually, it is the duty of a company that issues credit card to limit what it can charge its customers for the fees. Where government now intervenes in limiting the credit card fees, it means government is performing the role of controlling financial institutions.

There is a law on credit card conditions which states that should there be an increase in charges on credit card issuance, notice of such should be given ahead and also there should be no arbitrary increase in interest rate.

The above mention is the role of financial institutions but where there is involvement of government, it means government is controlling them.